By Pubudini Abeyesekera
In my previous article on ‘The Future of Work in Sri Lanka: 2026 and Beyond,’ I explored how organisations must shift from cost control to productivity and digital optimisation. But transformation at a systems level is only as strong as the people behind it.
Today, Sri Lanka stands at a defining moment. Our ability to build a digitally competitive workforce will determine whether we simply stabilise or position ourselves as serious players in the global digital economy.
Closing the skills gap: From awareness to action
Sri Lanka’s literacy rate exceeds 92%, and we produce over 30,000 university graduates annually. Yet, organisations across sectors consistently report a shortage of industry ready digital talent, particularly in areas such as data analytics, AI, cybersecurity, and cloud technologies.
According to multiple industry estimates, the ICT sector alone requires over 200,000 skilled professionals, while the current workforce is significantly below that threshold. This gap is not just about numbers anymore; it is about capability.
We are seeing three clear disconnects:
- Academic qualifications vs. applied digital skills
- Technical knowledge vs. business problem-solving ability
- Traditional job roles vs. evolving digital expectations
For businesses, this translates into slower innovation and reduced competitiveness. For the country, it risks limiting our ability to participate meaningfully in the global digital economy.
The path forward requires a shift from education as a one-time event to continuous, workplace-driven learning ecosystems. Organisations must take greater ownership of upskilling, embedding learning into the flow of work.
Rethinking brain drain as a retention strategy
Sri Lanka has long been recognised for producing globally competitive talent. However, this has also contributed to a sustained outflow of skilled professionals.
Recent estimates suggest that over 300,000 Sri Lankans left the country for foreign employment between 2022 and 2024, with a notable proportion comprising skilled and semi-skilled professionals. The tech sector, in particular, continues to experience high mobility.
But the question we must ask is not just ‘Why do people leave?’ but ‘What would make them stay? Or even return?’
The answer lies in three key areas:
- Access to meaningful, high-impact work
- Exposure to global opportunities while based locally
- Flexibility, growth, and competitive rewards
Retention today is no longer about containment. It is about creating compelling employee value propositions. Organisations that succeed will be those that align careers with purpose, growth, and global exposure.
HR technology as a strategic retention lever
In this context, HR technology plays a far more strategic role than ever before.
Modern HR platforms enable organisations to:
- Deliver personalised career pathways and internal mobility
- Use people analytics to predict attrition and engagement trends
- Foster continuous performance and feedback cultures
- Scale learning and development aligned to future skills
At MiHCM, we have seen how organisations leveraging digital HR platforms are better equipped to retain high-value talent. When employees feel recognised, developed, and connected to a clear career journey, retention becomes a natural outcome.
Importantly, HR technology also democratises access. It enables Sri Lankan organisations regardless of size, to offer seamless employee experiences comparable to global enterprises.
Remote work: Competing in a borderless talent market
Remote work has fundamentally reshaped the talent landscape.
Sri Lankan professionals can now access global opportunities without relocating, while local organisations are competing directly with international employers. Platforms such as Upwork and LinkedIn indicate a steady rise in Sri Lankan professionals participating in the global gig and remote workforce.
This creates both a challenge and an opportunity.
Forward-looking organisations are responding by:
- Building distributed teams across regions
- Engaging diaspora talent on flexible models
- Offering hybrid work environments aligned with global standards
However, remote work success depends on more than flexibility. It requires:
- Strong digital infrastructure and stable connectivity
- Uninterrupted power
- Clear performance and accountability frameworks
- A culture built on trust and outcomes
Those who get this right will not only retain talent, they will unlock new productivity frontiers.
Workforce readiness and foreign investment
There is a direct correlation between workforce capability and Foreign Direct Investment (FDI).
Sri Lanka’s IT/BPM sector has already demonstrated this potential, generating over USD 1.5 billion in export revenue annually. However, to scale beyond this, investors are increasingly evaluating:
- Depth, competency and quality of digital talent
- Readiness for emerging technologies
- Ability to scale teams quickly
A digitally competitive workforce is no longer a supporting factor. It is a primary investment driver.
Sri Lanka has a unique opportunity to position itself as a regional hub for digital talent, particularly given its strong education base and cost competitiveness. But this requires coordinated action across the private sector, academia, and policymakers.
A leadership imperative
Building a digitally competitive workforce is not a long-term ambition. It is an immediate priority.
As leaders, we must:
- Rethink how we hire, develop, and retain talent
- Invest in continuous learning and digital capability building
- Leverage technology to enhance human potential
- Create environments where people can do their best work, from anywhere
Sri Lanka’s greatest strength has always been its people. The next phase of our growth will depend on how effectively we enable them to compete and succeed, in a digital-first world.
If we get this right, we will not only retain our best talent, but we will also position Sri Lanka as a destination of choice for global business.
Pubudini Abeyesekera
CEO – Sri Lanka & Maldives at MiHCM
(MiHCM CEO – Sri Lanka and Maldives Pubudini Abeyesekera has over 20 years of experience in Business Development, Business Operations and Client Relationship Management within various industries of Tech, Start-ups, Education, Real Estate, Airlines, Banking, and Hospitality. She leads with a hands-on approach backed with empathy and thrives on identifying talent, nurturing individuals, and building high-performing teams.)
