A great achievement
Sri Lanka's economy has been resilient enough to
withstand the global economic downturn and the massive defence
expenditure and still record considerable growth. The
Government's prudent economic policies are responsible for this
in no small measure. In fact, both the International Monetary
Fund and the Asian Development Bank have recognized the Sri
Lankan economy's potential in boosting aid to the country.
In the backdrop of these development comes the good news that
the country's unemployment rate has decreased drastically to
just 5.2 percent, from 16 percent in 1990 in spite of the twin
challenges posed by the global economic recession and the
North-East war. With the latter taken care of, we now have to
contend only with the global economic crisis. Thus there is
every possibility that the rate could go down further.
The Government has cited several reasons for this
performance. State mechanisms on alleviating poverty, minimizing
unemployment and boosting the education and health sectors have
contributed directly to the gradual decline in unemployment. The
rate stood at 7.7 percent in 2005, 7.5 percent in 2006, 6
percent in 2007.
It is significant that the Samurdhi poverty alleviation
program is not a simple 'dole' system as seen in many countries.
Samurdhi recipients are directed towards self-employment and
self-reliance. Instead of perpetuating a vicious cycle of
poverty, the program uplifts the recipients' economic conditions
and guides them towards proper livelihood avenues. This has led
to a reduction in poverty and unemployment levels.
Boosting education and health has also led to the opening of
more job opportunities in these sectors. Thousands of new
teachers, nurses and health workers have been recruited
islandwide. These sectors are expanding at a considerable rate
and the employment potential is immense.
Graduate unemployment was a serious problem some years ago.
This was compounded by a decision taken by a previous Government
to freeze State sector recruitment. Fortunately, this Government
has rectified this colossal mistake. Since 2004 up to now,
57,764 graduates have been granted Government jobs, not only in
teaching and health professions but also in a gamut of other
sectors.
One of the biggest problems facing graduates is that many of
them cannot match the requirements of the private sector job
market. The private sector advertises thousands of new jobs
every week, but there are only a few takers. This is a pathetic
situation. The graduates should develop more skills, including
English language proficiency, to be eligible for most private
sector jobs. The authorities should tailor school and university
curricula in such a way that they address the needs and concerns
of the job market. This will pave the way for more graduates to
work in the private sector.
The newly-liberated Northern and Eastern Provinces have to be
developed anew. The Government has formulated two programs
'Northern Spring' and 'Eastern Resurgence' - for this purpose.
The massive reconstruction and re-development effort now
underway in these provinces will require a vast amount of
manpower. The services sector too should gear itself for
expansion in the North and the East. These will have a direct
bearing on employment creation.
More investors are likely to commence ventures in all parts
if the country including the North and the East, in the
aftermath of the defeat of LTTE terrorism. The authorities are
already conducting roadshows in major world capitals to attract
more investors, including members of the Sri Lankan diaspora.
The Board of Investment must encourage more of them to reach out
to the provinces, where more jobs need to be created. This will
also help reduce the disparities between the Western Province
and other provinces in terms of development, employment and
quality of life.
With more than 1.4 million Sri Lankans employed abroad,
foreign employment has become a mainstay of the economy. They
remit billions of dollars to the country every year, helping to
boost the economy. Sri Lanka should aim to send more skilled
workers, who can command higher salaries, to foreign job markets
while minimizing the number of unskilled workers and domestic
aides.
The Bureau of Foreign Employment and other authorities must
also look for new labour markets as the Middle East is nearing
saturation point. One example is the opportunity available for
nurses to work in the United States.
Peace - and the unprecedented international backing for the
Government's reconstruction drive - will undeniably be a
catalyst for the economy. The absence of conflict will lead to a
resurgence in the economy and to the re-integration of Northern
and Eastern economies. An expanding economy is good news for
unemployed youth as more employment opportunities will be
created in manufacturing, goods and services sectors. More
concessions and incentives are likely to be granted for
self-employment and small and medium enterprises. Judging by the
growth prospects so far, next year's unemployment figures should
be even lower than the present rates as the economy surges
forward. |