Economy

Over 80% state university graduates are migrating

Published

2 months ago

February 28, 2026

Sri Lanka is undergoing a brain drain crisis where a new study from the University of Peradeniya reveals that over 50 per cent of state university graduates, rising to 80-90 per cent in critical fields like medicine, engineering, and agriculture, are migrating permanently, never to return, according to a recent article by Ceylon Public Affairs.

The article which explores brain drain levels in 2025 mentions that the Sri Lankan government spends Rs. 87 billion yearly on university education in which many believe this has turned free education into a “development aid programme” for richer countries, with the best and brightest doctors, engineers, and scientists contributing to the economies of the West while Sri Lanka grapples with a 24.5 per cent poverty rate.

“Yearly, 42,000 undergraduates are educated across disciplines such as arts (25 per cent), management (20 per cent), engineering (13 per cent), and medicine (10 per cent). However, this system is inadvertently fuelling a migration of skilled workers. According to the University of Peradeniya study, the brightest graduates—those with science-based degrees—are leaving in droves, with migration rates exceeding 80 per cent in some departments.” Ceylon Public Affairs says.

Ceylon Public Affairs says that the reason for such high levels of brain drain is due to both economic and social realities. Low wages and high unemployment worsened by the country’s recent economic crisis, including a sovereign default and the lingering effects of the COVID-19 pandemic that pushes graduates to seek opportunities abroad. Meanwhile, the private and public sectors in Sri Lanka struggle to offer salaries competitive with global markets, trapping the nation in what economists call the middle-income trap.

Economy

Sri Lanka literacy hits record 97.4%, gender gap closes for first time

Published

3 days ago

April 12, 2026

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Sri Lanka has achieved a historic education milestone, with literacy rising to 97.4% in 2024, up from 95.7% in 2012.

For the first time since 1881, the literacy gender gap has closed, with males at 97.9% and females at 97.0%.

Digital literacy has reached 67.6%, while computer literacy stands at 34.7%, highlighting Sri Lanka’s growing digital transformation.

Economy

$ 900 m in four months: Port City Colombo signals new investment era

Published

4 days ago

April 11, 2026

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From November 2025 to March, Port City Colombo secured approximately $ 900 million in investments, an almost unprecedented surge for a project that had seen gradual traction in its early years amid broader macroeconomic challenges. The timing is not accidental.

After a prolonged period marked by the Easter Sunday attacks, the global shock of the COVID-19 pandemic, and Sri Lanka’s economic collapse, the project remained largely in a holding pattern.

International marketing efforts began to gain momentum from late 2025 onwards, as conditions began to stabilise.

“The macro story had to align first,” Aluwihare explained. “You cannot market a country when the fundamentals are unstable. Now, we are seeing recovery, policy alignment, and growing confidence, and we are finally seeing the results.”

From real estate to a ring-fenced financial ecosystem

Port City Colombo’s most significant transformation has been conceptual rather than physical. Originally envisioned as a waterfront real estate development, it has evolved into a fully ring-fenced services export Special Economic Zone (SEZ), enabled by the Colombo Port City Economic Commission Act.

Economy

Sri Lanka’s Official Reserves fall 3.5%in March – CBSL

Published

6 days ago

April 9, 2026

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Sri Lanka’s Official Reserve Assets have decreased by 3.5% to USD 7,019 million in March 2026, according to the latest data of the Central Bank of Sri Lanka.

The CBSL states that the decrease is from USD 7,270 million reported in February 2026.

The CBSL further states that the figure for March includes the swap arrangement with the People’s Bank of China.