Sri Lanka unemployment falls to 3.8 pct, mixed output trends persist-Xinhua

Sri Lanka unemployment falls to 3.8 pct, mixed output trends persist

Source: Xinhua

Editor: huaxia

2026-03-31 16:24:00

COLOMBO, March 31 (Xinhua) -- Sri Lanka's labor market improved in the fourth quarter of 2025, with the unemployment rate falling to 3.8 percent from 4.2 percent in the previous quarter, while labor force participation rose to 48.8 percent from 47.7 percent, according to the latest weekly economic indicators issued by the Central Bank of Sri Lanka.

The data pointed to stronger economic activity as more people entered the workforce.

Sectoral output trends, however, remained mixed. Tea production declined year-on-year for the third straight month in January 2026, while rubber production increased during the same period, supported by fewer rainy days that helped tapping activities.

The central bank said the latest data showed improving labor market conditions alongside uneven performance in key output sectors, reflecting a gradual but still fragile recovery in the economy.