Economy

Over 80% state university graduates are migrating

Published

3 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 Secures US$695 Million IMF Tranche

Published

3 days ago

May 28, 2026

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Sri Lanka has secured another US$695 million from the IMF after the completion of the fifth and sixth reviews of the country’s reform programme.

The IMF says Sri Lanka’s reform performance remains “generally strong” despite global challenges, but warned that the Middle East conflict and Cyclone Ditwah pose risks to economic recovery.

Economy

IMF Says Sri Lanka’s Policy Framework StrongerThan In The Past

Published

4 days ago

May 27, 2026

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IMF mission chief Evan Papageorgiou painted a firmer, more confident picture of Sri Lanka’s economic policy framework as the Fund’s Executive Board prepares to consider the combined Fifth and Sixth Reviews of the country’s Extended Fund Facility (EFF) on Wednesday, 27 May.

“Sri Lanka’s reform program continues to move forward,” Papageorgiou said, stressing that “Sri Lanka’s policy framework today is considerably stronger than in the past.”

The IMF view, voiced at a critical moment for the island’s finances , frames the coming Board decision as a test of whether progress on macro stability, reserve rebuilding and investor confidence will translate into continued financial support.

The Executive Board’s decision could unlock the sixth and seventh tranches of the EFF, together worth about USD 700 million.

IMF mission chief Evan Papageorgiou said that the authorities’ recent progress in restoring macroeconomic stability and rebuilding reserves has been recognised by the public, investors and stakeholders.

Global shocks continue to pose renewed pressures, but the Fund emphasised that a stronger policy stance means Sri Lanka is better placed to navigate them.

Economy

Sri Lanka’s exports surpass US$ 5.7b in first four months of 2026

Published

5 days ago

May 25, 2026

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Sri Lanka’s total exports, comprising both merchandise and services, reached US$ 1,380.93 million in April 2026, recording a year-on-year growth of 6 % compared to April 2025.

According to provisional data released by Sri Lanka Customs, together with estimated figures for Gems & Jewellery and Petroleum Products, merchandise exports in April 2026 increased by 9.87% to US$ 1,063.77 million.

Earnings from services exports were estimated at US$ 317.16 million in April 2026, underscoring the growing importance of the services sector in driving Sri Lanka’s overall export performance.

On a cumulative basis, total exports for the period January to April 2026 are estimated at US$ 5,784.38 million, reflecting a growth of 4.3 % over the corresponding period in 2025.

Overall, the positive export performance recorded during the first four months of 2026 highlights the resilience of Sri Lanka’s external sector. Sustained export earnings, supported by stable merchandise trade and the growing contribution of services exports, indicate a steady and encouraging recovery trajectory for the Sri Lankan economy in 2026.