Sri Lanka’s drive to increase exports is confronting an unexpected obstacle: the steady outflow of workers and the widening gap between industry requirements and available skills. As overseas employment continues to attract thousands of Sri Lankans, exporters are warning that domestic industries may struggle to maintain expansion without a comprehensive workforce strategy.
The National Chamber of Exporters (NCE) said labour shortages have become a nationwide economic concern, affecting companies across export sectors that depend on a stable supply of trained employees. The Chamber noted that difficulties in recruiting, training, and retaining workers are creating pressure on businesses already operating in a challenging global environment.
Sri Lanka’s overseas employment sector remains a significant source of foreign exchange. According to the NCE, 143,087 Sri Lankans had left for foreign employment by 2026, while the Sri Lanka Bureau of Foreign Employment (SLBFE) has set a target of facilitating 250,000 overseas placements during the year. More than 1.07 million Sri Lankans are currently working abroad, with large numbers employed in countries such as the United Arab Emirates, Saudi Arabia, and Kuwait.
While recognising the economic value of migrant workers and remittances, exporters say the country must address the impact of labour migration on domestic industries. They argue that Sri Lanka needs policies that balance overseas employment opportunities with the workforce requirements of export-driven businesses.
The NCE said the challenge is particularly serious because many industries are not merely searching for additional workers but for employees with specific technical capabilities. Manufacturing and agricultural exporters increasingly require specialised skills that are difficult to replace quickly.
The Chamber has called for stronger coordination between industry, educational institutions, and vocational training providers to create a workforce aligned with future economic needs. It also highlighted employee retention as a critical issue, with companies facing difficulties keeping trained workers for longer periods.
The Government’s proposed inward labour migration policy has been welcomed by exporters as a possible solution for filling shortages in occupations where local recruitment is insufficient. However, the Chamber stressed that foreign workers should complement, rather than replace, efforts to strengthen Sri Lanka’s own workforce.
The export sector’s concern reflects a wider economic dilemma. Sri Lanka needs foreign exchange from overseas employment while also requiring enough skilled workers at home to produce goods, expand industries, and compete internationally.
Failure to resolve this imbalance could undermine export growth at a crucial stage of economic recovery. For businesses already facing workforce shortages, the labour crisis is no longer a future risk it is becoming an immediate challenge threatening production, investment, and Sri Lanka’s position in global markets.
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