Top economist Dr. Anila Dias Bandaranaike has raised concerns over the viability of the low wages offered by Sri Lanka’s private sector, revealing that entry-level salaries for degree holders range from Rs.30,000 to Rs.40,000—barely enough to meet the minimum income required to stay above the poverty line. Speaking at a panel discussion hosted by the Sri Lanka-Korea Business Council under the theme ‘Sri Lanka’s Future Forecast, Scenarios and Challenges,’ Dr. Bandaranaike highlighted that the private sector’s failure to offer decent wages is a significant factor driving the brain drain and staff shortages.
Despite recent wage increases, she pointed out that the current salary scale remains insufficient for a decent standard of living. “If a household is fortunate enough to have two wage earners, each must bring in at least Rs.30,000,” she noted. Dr. Bandaranaike criticized businesses for expecting employees to live in poverty and suggested that it’s no wonder many prefer jobs abroad where they can earn a better living.
She also stressed the need to update Sri Lanka’s archaic labor laws, noting that the formal private sector is stagnating, with only 30 percent of the labor force employed in private companies. With the labor force participation rate below 50 percent and a significant number of Sri Lankans seeking employment abroad, Dr. Bandaranaike urged private sector stakeholders to collaborate on solutions and prioritize necessary reforms. She warned that without these reforms—updating outdated laws, reducing the bloated public sector, and raising private sector wages—economic stability and improvement would remain elusive.