Sri Lanka’s Unemployment Rate Rises to 4% in Q2 2026

COLOMBO, October 3, 2026 — Sri Lanka’s unemployment rate increased to 4.0% in the second quarter of 2026, up from 3.8% during the corresponding quarter of 2025, according to the latest Weekly Economic Indicators report published by the Central Bank of Sri Lanka.

Despite the rise in unemployment, the labour force participation rate increased to 50.0% in Q2 2026, compared with 49.3% in the same quarter of 2025, indicating a larger share of the working-age population participated in the labour market.

The increase in labour force participation comes as more people entered the labour market during the period, while the higher unemployment rate indicates that not all new labour-market participants were able to secure employment.

The latest figures highlight the continuing importance of expanding employment opportunities and strengthening skills development as Sri Lanka’s economy moves through its recovery phase, particularly for new entrants to the workforce and younger job seekers.