The mass migration of skilled Sri Lankan workers could slow down the island nation’s fragile economic recovery, top officials at the Central Bank of Sri Lanka (CBSL) have warned.
With the country still reeling from its 2022 sovereign debt default, a growing number of professionals are seeking better opportunities abroad. According to data from the Sri Lanka Foreign Employment Bureau, a record 312,836 people left the country in 2023, surpassing the previous record of 310,953 set in 2022.
“This brain drain is a possible downside risk that could affect economic growth,” said Chandranath Amarasekara, Assistant Governor of the Central Bank, during a press briefing in Colombo. “We see anecdotal evidence from all sectors that skilled workers are leaving, and this will have a severe impact on the economy.”
Sri Lanka’s banking sector is already feeling the pressure, with many private banks reporting a shortage of experienced professionals. “The cream of our staff has already left the country,” one senior banking official said, calling the situation a “daunting challenge” for the industry.
Jegajeevan, Director of the Central Bank’s Economic Research Department, emphasized the long-term consequences of the exodus. “The country is facing a lack of skilled middle-level staff. This could impact productivity as junior employees struggle to bridge the gap. Until then, there will be a slowdown in the momentum of economic recovery.”
Despite concerns, the Sri Lankan government has set an ambitious target of sending 340,000 workers abroad in 2025 as part of its foreign employment strategy. While remittances from overseas workers remain a crucial source of foreign exchange, economists caution that losing skilled labor could create structural weaknesses in key industries.
