Sri Lanka’s unemployment rate rises to 4% in second quarter

Sri Lanka’s unemployment rate rose to 4% in the second quarter of 2026 from 3.7% in the first quarter, according to the latest Labour Force Survey released by the Department of Census and Statistics.

The number of unemployed people was estimated at 340,240 during the quarter.

Youth unemployment remained significantly higher than the national average. Among those aged 15 to 24, the unemployment rate stood at 17.8%, including 22.4% among women and 15.5% among men. LFS_Q2_Bulletin_2026

Female unemployment overall was also considerably higher than male unemployment, at 6.1% compared with 2.8%.

Unemployment was highest among those with GCE Advanced Level qualifications or above, at 6.7%. Among women in this educational category, the rate was 9.6%, compared with 3.9% among men.

The labour force participation rate increased to 50% in the second quarter, up from 49.2% in the first quarter. Male participation stood at 70.3%, while female participation was 32.7%.

Sri Lanka’s employed population was estimated at 8.25 million during the quarter. Services accounted for 49.2% of employment, followed by industry at 27.3% and agriculture at 23.4%.

The survey was based on a quarterly sample of 6,250 housing units and covered data collected in April, May and June 2026.