The Employment Divide: Employees, Self-Employment, and Informal Work

Sri Lanka’s labour market is shaped not only by how many people are employed, but by how they work. Data from the Labour Force Survey – Annual Report 2024 highlights clear divisions between salaried employees, self-employed workers, and informal contributors—revealing structural patterns that have major implications for workforce development and HR strategy.

Employees Dominate — But Not Across All Regions

Nationally, 58.8% of Sri Lanka’s employed population are employees, engaged in regular wage or salary-based work. Districts such as Colombo, Gampaha, Kalutara, and Galle show particularly high concentrations of employees, reflecting stronger formal-sector presence and economic activity.

However, in districts including Monaragala, Anuradhapura, Polonnaruwa, and Hambantota, the share of employees falls below 50%. In these areas, self-employment and informal work play a much larger role, pointing to uneven regional development and limited access to formal employment opportunities.

Self-Employment as a Core Feature of the Labour Market

Self-employment remains a defining feature of Sri Lanka’s workforce. Own-account workers account for 33.1% of total employment, while employers and contributing family workers together represent an additional 8.1%.

District-level figures show particularly high dependence on own-account work in Vavuniya, Monaragala, Kurunegala, Anuradhapura, and Hambantota. While this reflects adaptability and entrepreneurship, it also exposes workers to income instability and limited social protection.

A Small Employer Base Limits Job Creation

Only 2.9% of the employed population are classified as employers, highlighting the narrow base of job creators in the economy. Employer concentration is highest in urban districts such as Colombo and Gampaha.

Gendered Patterns in Employment Status

Employment status data reveals strong gender segmentation. Eighty-eight percent of employers are male, while 75.5% of own-account workers are male. In contrast, 74.7% of contributing family workers are female, indicating women’s concentration in unpaid or low-recognition roles.

Private Sector Carries the Employment Burden

The private sector accounts for 44.4% of total employment, compared to 14.4% in the public sector. Women are more strongly represented in public sector employment, reflecting preferences for job security and structured working conditions.

What This Means for HR and Workforce Strategy

Sri Lanka’s employment status data highlights a workforce fragmented by region, employment type, and gender. For HR leaders and employers, understanding these divides is essential to designing inclusive hiring practices and supporting sustainable job creation.

References

Department of Census and Statistics (DCS), Sri Lanka – Labour Force Survey: Annual Report 2024 (Section 4.2; Tables 4.3 & 4.4; Figures 4.4 & 4.5)