THE CHALLENGE OF DEVELOPING AND OPTIMIZING HUMAN RESOURCES IN SRI LANKA: CURRENT ISSUES AND THEIR IMPLICATIONS

Abstract

There is consensus of opinion that well developed human resources plays a critical role in the process of value creation and thereby enhances the prospects of competitive capability of a nation. Having reached over 92 percent adult literacy Sri Lanka demonstrates a high potential to become a “knowledge hub in South Asia” as laid down in the “Mahinda Chintana- towards a New Sri Lanka”, the policy framework of the Government. Sri Lanka’s achievements in relation to social development indicators such as adult literacy, life expectancy and infant mortality are well known. However, it has not yet been possible for the country to reach the status of a knowledge driven economy despite the fact that Sri Lanka has surpassed a per capita income of US $2000 and reached a growth rate of 8 per cent in 2010. The annual investment for education in Sri Lanka has been below 2 per cent of the GDP. Where higher education is concerned the national investment has been dismally low; around 0.6 per cent of the GDP. In this context, transforming the nation’s human resource into a high value adding dynamic resource is a serious challenge. The data on performance of the economy shows that growth has occurred mainly in the services sector which has contributed about 59 per cent of the GDP as per the Annual Report of the Central Bank of Sri Lanka for 2010. Other key sectors such as Agriculture, Forestry, Fisheries and Livestock, and Manufacturing Industries have maintained a slow growth rate. These sectors have absorbed largely the less skilled rural labour whose productivity, as well as earnings, are comparatively low. Sri Lanka is facing the challenge of absorbing into productive employment the youth who join the workforce annually. These youth, in the age group of 15-24 years and comprising of school leavers, apparently do not have marketable knowledge and skills. Thus, the challenge of transferring marketable skills to these youths is expected to be tackled through appropriate reforms in the system of education and training. The paper posits that a paradigm shift in the current approach towards education, higher education and vocational and technical education is needed if we are to optimize the available workforce through transfer of marketable skills and inculcation of right attitudes.