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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

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CONTENTS

INTRODUCTION

REVIEW OF THE FOUR SECTORS

TRAINING NEEDS IN THE FOUR SECTORS

THE SUPPLY OF TRAINING

CONCLUSIONS AND POLICY IMPLICATIONS

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TABLES

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FIGURES

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ABBREVIATIONS

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INTRODUCTION

1.1 Objectives

Public

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Perc

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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

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1

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3

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5

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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

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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

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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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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).

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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

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20

40

60

80

100

1998 2006 2011 2013

Perc

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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

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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

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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,

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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

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Stepping up Skills for more Jobs and Higher Productivity

Sri Lanka Poverty Assessment Engendering Growth with Equity: Opportunities and Challenges

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APPENDICES

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