Public sector employs 15% of workforce but contributes 5% to GDP, President’s Secretary

Sri Lanka’s public sector accounts for around 15% of the national workforce and 26% of total Government expenditure, but contributes only about 5% to Gross Domestic Product, President’s Secretary Dr Nandika Sanath Kumanayake said.

Speaking at the National Productivity Awards 2025/26 ceremony at the BMICH in Colombo on Sunday, Kumanayake said low productivity within State institutions had created a cycle in which weak performance depressed output and limited the Government’s ability to offer competitive salaries.

He said this had made it increasingly difficult for the public sector to attract and retain skilled professionals, many of whom were moving to the private sector or seeking employment overseas.

Kumanayake said breaking this cycle required the modernisation of State administration through technology, automation and wider digitalisation.

He also called for changes in human resource management and workplace culture, stressing the importance of discipline, accountability, teamwork and greater concentration on productive work.

The Government’s Clean Sri Lanka programme was aligned with these objectives by seeking to encourage behavioural change and improve productivity across the workforce, he said.

The National Productivity Awards, organised by the National Productivity Secretariat under the Ministry of Industry and Entrepreneurship Development, recognise institutions in the public, school, manufacturing and service sectors for achievements in productivity, innovation and efficiency.

President Anura Kumara Dissanayake presented Gold Awards to the highest-performing institutions.

First introduced in 2003 and held biennially, the competition was conducted this year for the first time since 2021. This year’s awards were also aligned with the Clean Sri Lanka programme.

Assessment criteria included leadership, strategic management, human resource development, stakeholder relations, operational processes, innovation, digitalisation and measurable productivity improvements.

The evaluation also incorporated social, environmental and ethical considerations, including employee welfare, community participation, waste management, energy efficiency, transparency and accountability.

Industry and Entrepreneurship Development Minister Sunil Handunnetti said Sri Lankan society had become more accustomed to discussing waste, corruption and inefficiency than productivity.

He said the revival of the awards after six years provided an opportunity to bring productivity back into public discussion and recognise public servants who continued to deliver results despite limited resources.