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The Skills Gap in Four Industrial Sectorsin
Sri Lanka
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FOREWORD
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Mr. Donglin Li
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ACKNOWLEDGEMENTS
AUTHORS
Sunil Chandrasiri
Ramani Gunatilaka
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EXECUTIVE SUMMARY
Introduction
Background
Demand for training services
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Supply of training services
Skills mismatch
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Conclusions
vii
CONTENTS
INTRODUCTION
REVIEW OF THE FOUR SECTORS
TRAINING NEEDS IN THE FOUR SECTORS
THE SUPPLY OF TRAINING
CONCLUSIONS AND POLICY IMPLICATIONS
viii
TABLES
ix
FIGURES
x
ABBREVIATIONS
1
INTRODUCTION
1.1 Objectives
Public
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-2
0
2
4
6
8
10
12
Perc
enta
ge %
Sri Lanka
India
Pakistan
Bangladesh
Malaysia
Korea, Rep.
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The Skills Gap in Four Industrial Sectors in Sri Lanka
Investment Programme Skills Sector Development Programme of Sri Lanka 2014-2020
1.2 Rationale
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1. Introduction
0
1
2
3
4
5
6
7Institutions
Infrastructure
Macroeconomic stability
Health and primary education
Higher education and training
Goods market efficiency
Labor market efficiency
Financial market sophistication
Technological readiness
Market size
Business sophistication
Innovation
2009/10 2014/15
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The Skills Gap in Four Industrial Sectors in Sri Lanka
5
1. Introduction
1.3 Policy background
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The Skills Gap in Four Industrial Sectors in Sri Lanka
Mahinda Chintana
Mahinda Chintana
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1. Introduction
8
The Skills Gap in Four Industrial Sectors in Sri Lanka
1.4 Data and methodology
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1. Introduction
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The Skills Gap in Four Industrial Sectors in Sri Lanka
1.5 Economic growth and employment in Sri Lanka, 2004-2012
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1. Introduction
0 10 20 30 40 50 60 70 80
Agriculture and fishing (29%)
Mining (1%)
Manufacturing (18%)
Electricity Gas and Water (0%)
Construction (7%)
Trade (15%)
Hotels and restaurants (2%)
Transport and communications (7%)
Finance (2%)
Real estate, renting and business activities (2%)
Services (18%)
All sectors (100%)
Percentage %
% Growth in employment 2004-2012
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The Skills Gap in Four Industrial Sectors in Sri Lanka
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1. Introduction
Mahinda Chintana
et al.
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REVIEW OF THE FOUR SECTORS
2.1 Overview of the four sectors based on labour force survey data
Contribution to GDP and employment
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2. Review of The Four Sectors
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The Skills Gap in Four Industrial Sectors in Sri Lanka
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2. Review of The Four Sectors
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The Skills Gap in Four Industrial Sectors in Sri Lanka
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2. Review of The Four Sectors
Distribution of skills in the workforce employed in the four sectors
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The Skills Gap in Four Industrial Sectors in Sri Lanka
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2. Review of The Four Sectors
Industrial sector Formal TVET Informal TVET Total employed Share of all workers with technical training (%)
Men Women Men Women Men Women
ICT 2798 1523 264 5102 2591 56
Tourism 6366 833 2801 56119 13378 10
Construction 25035 2382 27708 1073 239046 7140 11
Light engineering 20511 2005 12282 601 96646 8242 21
Total TVET trained 54,710 6,744 43,055 1,674 396,914 31,352 14
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The Skills Gap in Four Industrial Sectors in Sri Lanka
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2. Review of The Four Sectors
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The Skills Gap in Four Industrial Sectors in Sri Lanka
Organizational structure and nature of employment
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2. Review of The Four Sectors
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The Skills Gap in Four Industrial Sectors in Sri Lanka
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2. Review of The Four Sectors
Employment change in the four key sectors, 2004-2012
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The Skills Gap in Four Industrial Sectors in Sri Lanka
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2. Review of The Four Sectors
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The Skills Gap in Four Industrial Sectors in Sri Lanka
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2. Review of The Four Sectors
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The Skills Gap in Four Industrial Sectors in Sri Lanka
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2. Review of The Four Sectors
ICT Sector
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The Skills Gap in Four Industrial Sectors in Sri Lanka
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2. Review of The Four Sectors
Tourism
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The Skills Gap in Four Industrial Sectors in Sri Lanka
Construction
Gama Naguma Maga Naguma
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2. Review of The Four Sectors
Light engineering services
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The Skills Gap in Four Industrial Sectors in Sri Lanka
36183
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2. Review of The Four Sectors
2.3 Employment growth potential of the four sectors
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The Skills Gap in Four Industrial Sectors in Sri Lanka
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TRAINING NEEDS IN THE FOUR SECTORS
3.1 Introduction
3.1 District-level demographics
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The Skills Gap in Four Industrial Sectors in Sri Lanka
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3. Training Needs in the Four Sectors
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9
5
4
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9
0 5 10 15 20 25 30 35
Marriage
Employment
Requirement of family member
Settled down after displacing
Education
Displaced
Development Projects
Other
Percentage %
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The Skills Gap in Four Industrial Sectors in Sri Lanka
5 This is also based on the earlier findings by Perera and Ukwatta, (2000).
45
3. Training Needs in the Four Sectors
3.2 Training needs of new entrants to the labour market
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The Skills Gap in Four Industrial Sectors in Sri Lanka
29,878
29,280
28,695
28,121
27,559
27,007
26,467
25,938
88,238
86,473
84,744
83,049
81,388
79,760
78,165
76,602
86,993
85,253
83,548
81,877
80,240
78,635
77,062
75,521
0% 20% 40% 60% 80% 100%
2013
2014
2015
2016
2017
2018
2019
2020
Between grades 5 to 9
Not qualified for AL
Not eligible for university entrance from AL
0
20
40
60
80
100
1998 2006 2011 2013
Perc
enta
ge %
Share of total unemployed with vocational training
Share of total unemployed without vocational training
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3. Training Needs in the Four Sectors
ICT
0
20
40
60
80
100
Male Female Total
Perc
enta
ge %
Less than GCE O/L Passed GCE O/L Passed GCE A/L & above
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The Skills Gap in Four Industrial Sectors in Sri Lanka
Tourism
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3. Training Needs in the Four Sectors
Construction
Engineering Services Sector
Mahinda ChinthanaHuman Resources and Skill Requirements of Light Engineering
3.4 Market demand for occupation-based training in the four industries
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The Skills Gap in Four Industrial Sectors in Sri Lanka
Sector Occupation Domestic Market Foreign Market
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3. Training Needs in the Four Sectors
3.5 A conceptual framework: The missing element in Sri Lanka’s traditional approach to skills development
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The Skills Gap in Four Industrial Sectors in Sri Lanka
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3. Training Needs in the Four Sectors
3.6 Summary conclusions
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THE SUPPLY OF TRAINING
4.1 Introduction
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4. The Supply of Training
4.2 Training service provision in the four key sectors
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The Skills Gap in Four Industrial Sectors in Sri Lanka
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4. The Supply of Training
ICT
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The Skills Gap in Four Industrial Sectors in Sri Lanka
OJT21%
Self study20%
External short courses
15%
Professional qualifications
13%
Academic qualifications
11%
Formal in-house training
10%
Trade certification
9%
Other1%
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4. The Supply of Training
Tourism
Hotel Schools45%
Private TVET Institutes
27%
Public TVET Institutes
25%
Private TVET Institutes
2%
NGO TVET Institutes
1%
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The Skills Gap in Four Industrial Sectors in Sri Lanka
Construction
65%
16%
9%
6%
3% 1%
NAITA VTA DTET NYSC CGTTI UNIVOTEC
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4. The Supply of Training
Light Engineering and Manufacturing
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The Skills Gap in Four Industrial Sectors in Sri Lanka
4.3 Employers’ perceptions about the quality of training carried out by public TVET providers
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4. The Supply of Training
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The Skills Gap in Four Industrial Sectors in Sri Lanka
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4. The Supply of Training
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The Skills Gap in Four Industrial Sectors in Sri Lanka
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4. The Supply of Training
0
10
20
30
40
50
60
% o
f res
pons
es
ICT Tourism Construction
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The Skills Gap in Four Industrial Sectors in Sri Lanka
4.5 Summary
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CONCLUSIONS AND POLICY IMPLICATIONS
5.1 Introduction
Mahinda Chintana,
Overall review of four sectors
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The Skills Gap in Four Industrial Sectors in Sri Lanka
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5. Conclusions and Policy Implications
The demand for training
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The Skills Gap in Four Industrial Sectors in Sri Lanka
The supply of training
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5. Conclusions and Policy Implications
Skills gaps
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The Skills Gap in Four Industrial Sectors in Sri Lanka
5.3 Policy implications
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5. Conclusions and Policy Implications
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REFERENCES
The Challenge of Youth Unemployment in Sri Lanka
Annual Survey of Construction Industry 2010
Sri Lanka Labour Force Survey Annual Report 2012
Annual Survey of Industry 2013
Census of Population and Housing 2012 Provisional Information based on 5% Sample
Census of Population and Housing 2012 Key Finding
Building the Skills for Economic Growth and Competitiveness in Sri Lanka,
”
International Economic Journal,
77
Sri Lanka State of the Economy 2012 Report
Training Needs Analysis for the ICT Industry of Sri Lanka
Labour and Social Trends in Sri Lanka 2009
Skills Sector development Programme of Sri Lanka, 2014-2020 ( Towards employable skills for everyone)
Sri Lanka the Emerging Wonder of Asia Unstoppable Sri Lanka 2020, Mahinda Chintana Vision for the Future, Public Investment Strategy, 2014-2016
Demography of Sri Lanka: Issues and Challenges
The knowledge economy and education and training in South Asia
78
Stepping up Skills for more Jobs and Higher Productivity
Sri Lanka Poverty Assessment Engendering Growth with Equity: Opportunities and Challenges
79
APPENDICES
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