Sri Lanka, Sept. 15 -- Sri Lanka's low headline unemployment figures mask deeper structural challenges within the labour market, despite a 3.9% unemployment rate in 2025.

Examining the broader economic context following the release of the latest numbers by the Department of Census and Statistics reveals a more complex reality.

The low unemployment rate reflects only those actively seeking work rather than widespread economic inclusion.

The national labour force participation rate stands at 49.4%, meaning approximately 8.6 million out of a working-age population of over 17 million are economically inactive.

Job security also remains limited for many workers.

Only 60.5% of the workforce are standard employees, leaving the remainder in ...