Sri Lanka's Skill Shortage in 2024

Sri Lanka's economic transformation towards a service-based model presents a crucial challenge: a growing skill shortage. Recent research paints a concerning picture but also offers potential solutions.

The Gap Widens

The World Bank report, "Enhancing Skills in Sri Lanka for Inclusion, Recovery, and Resilience," highlights a significant mismatch between employer needs and worker skillsets. Nearly half (45%) of employers surveyed reported difficulty finding qualified candidates, according to the report【World Bank, 2024】. This gap in skills is a major barrier to economic growth and development.

Modern Skills in Demand

The same report emphasizes the need for Sri Lanka to prioritize skilling its workforce in modern areas such as Information Technology (IT), digital services, and advanced manufacturing. A 2023 study by the Institute of Policy Studies (IPS) in Sri Lanka found that IT/BPM (Business Process Management) jobs grew by a staggering 38% year-on-year, highlighting the high demand【IPS, 2023】. This growth underscores the critical need for targeted training programs to meet industry demands.

Migrant Skills Mismatch

Another concern is the growing disconnect between the skills of Sri Lankan migrant workers and global job market demands. A World Bank report indicates that a significant number of Sri Lankan migrant workers struggle to find work that aligns with their skillsets【World Bank, 2024】. This is despite a record number of Sri Lankans seeking work abroad, with over 300,000 in 2022, according to data from the Sri Lanka Foreign Employment Bureau【Sri Lanka Foreign Employment Bureau, 2023】. This mismatch results in underemployment and limits the economic benefits of migration.

Bridging the Gap

The World Bank report suggests that Sri Lanka needs significant investment in upgrading its education and training systems. This includes reskilling and upskilling initiatives for the existing workforce, alongside improvements in the education system to ensure graduates possess the qualifications employers require【World Bank, 2024】. Additionally, partnerships between the government, private sector, and educational institutions can play a pivotal role in developing a workforce equipped with relevant skills.

Sri Lanka faces a significant challenge in addressing its skill shortage. However, by focusing on modern skills and prioritizing education and training system improvements, the country can bridge the gap and position itself for a more prosperous future. By aligning educational outcomes with market needs, Sri Lanka can ensure sustainable economic growth and enhanced global competitiveness.

Why Learning Management Systems (LMS) Can Be a Powerful Weapon Against Sri Lanka's Skill Shortage

Sri Lanka's skill shortage is a complex issue hindering economic growth in various industries. Learning Management Systems (LMS) can be a powerful tool to address this challenge by providing accessible and scalable skill development opportunities. Here's how:

Addressing the Specific Skills Gap:

Targeted Training: Research by Deloitte [Source: Deloitte's Skills Gap in Manufacturing Report] highlights that a well-designed LMS allows for targeted training programs. Employers can identify specific skill gaps within their workforce and curate learning paths with relevant courses to bridge those gaps. This targeted approach ensures employees acquire the exact skills needed for their roles.

Industry-Specific Focus: A study by the Asian Development Bank (ADB) emphasizes the need for industry-specific skills development in Sri Lanka [ADB report on Skills Development in Sri Lanka]. An LMS can accommodate industry-specific content. For example, the tourism industry could offer courses in digital marketing and social media management, while the manufacturing sector could focus on courses in automation and robotics.

Scalability and Accessibility:

1. Overcoming Geographical Barriers: A 2022 study by the World Bank highlights geographical disparities in access to skills development opportunities in Sri Lanka [World Bank report on Geographical Disparities in Skills Development]. An LMS platform can overcome this barrier by providing online learning content accessible to anyone with an internet connection. This allows individuals in remote areas to access essential skills training.
2. Cost-Effectiveness: Traditional training methods can be expensive and time-consuming. An LMS offers a cost-effective alternative. Content can be developed once and accessed by multiple learners, reducing training delivery costs. Additionally, employees can learn at their own pace, minimizing disruption to work schedules.
3. Improved Employee Performance: A study by Brandon Hall Group found that companies using LMS platforms see a 17% increase in employee productivity [Brandon Hall Group study on LMS and Productivity]. By equipping employees with the necessary skills, LMS can enhance their performance and contribute to overall business growth.
4. Reduced Skills Gap: Research by the Association for Talent Development (ATD) suggests that organizations utilizing LMS platforms report a significant reduction in skill gaps within their workforce [ATD research on LMS and Skill Gaps]. This demonstrates the effectiveness of LMS in closing the gap between employer needs and employee skillsets.

Examples for Sri Lankan Industries:

• IT Industry: An LMS can offer courses in cybersecurity, cloud computing, and programming languages to address the growing demand for skilled IT professionals.
• Tourism Industry: Training modules on hospitality management, social media marketing, and foreign language skills can be delivered through an LMS to enhance the tourism industry workforce.
• Manufacturing Industry: Online courses on automation, robotics, and lean manufacturing principles can be offered via an LMS to equip workers with the skills needed for a modern manufacturing environment.

By implementing a well-designed LMS with industry-specific content and accessible delivery methods, Sri Lanka can empower its workforce with the skills needed to thrive in the 21st-century economy.

References

• https://www.slbfe.lk/wp-content/uploads/2023/06/Annual-Report-2020-English.pdf
• https://www.ips.lk/sri-lanka-state-of-the-economy-2023-economic-policy-choices-from-stabilisation-to-growth/
• https://www.worldbank.org/en/news/speech/2023/07/19/towards-sri-lanka-s-recovery-green-resilient-and-inclusive-development