Summary: This book analyzes skills demand and supply in Sri Lanka and scrutinizes how skills are formed, the factors shaping skills demand, and the responsiveness of the system. Sri Lanka has made strong progress in economic growth and poverty reduction. Economic growth and structural changes in the economy, however, make skills development imperative as Sri Lanka implements its the Mahinda Chintana plan to become a regional hub in strategic economic areas. Yet, skills shortages and mismatches are widespread, and firms with undereducated employees and a shortage of skilled labor are less productive. This book proposes an effective skills development system to help diversify the country's economy, improve its labor productivity and competitiveness, offer the country the flexibility to compete effectively in the global economy, and further reduce poverty in the country. After the book's introduction to the Mahinda Chintana plan, chapter two describes the general education and training system in Sri Lanka, especially the TVET sector. Chapter three examines the main drivers of skills demand and skills mismatches and gaps in Sri Lanka. Chapter four studies the relationship between education, training, and labor market outcomes, including skills already available in the workforce. Chapters five and six analyze factors affecting the skills supply system, such as cost, financing, and governance and also private sector provision. Chapter seven briefly reviews firm-based training in Sri Lanka based on evidence from the employer survey. Chapter eight assesses workforce development policies in Sri Lanka based on the World Bank's Systems Approach for Better Education Results (SABER) framework. Finally, chapter nine provides the summary of main findings and outlines possibilities for the way forward in skills development in Sri Lanka. Please note that Figure 5.2 in the book is incorrect, and should be replaced by the corresponding figure in volume 2 of this report.
Official, scanned versions of documents (may include signatures, etc.)