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A path to sustainable development: The role of education in economic crisis recovery

A path to sustainable development: The role of education in economic crisis recovery

21 May 2025 | BY Prof. Tissa Ravinda Perera


Sri Lanka’s education system stands at a pivotal intersection, facing the dual challenge of addressing immediate economic hardships while laying the foundation for long-term national recovery. The nation’s economic crisis, culminating in a sovereign default in 2022, has had profound effects on various sectors, with education being both a casualty and a potential catalyst for recovery.


Econ. crisis and its impact on edu.

The economic downturn in Sri Lanka has led to a significant contraction in public spending, with education allocations being particularly affected. In 2022, Government expenditure on education fell to a historic low of 1.2% of the gross domestic product (GDP), down from 3% in 2016. This reduction has resulted in deteriorating infrastructure, with many schools lacking basic facilities such as laboratories, libraries, and computer rooms. For instance, 72% of schools lacked laboratories for the General Certificate of Education (GCE) Ordinary Level (O/L), and 42% did not have computer laboratories.

Furthermore, the economic strain has led to increased dropout rates, particularly among students from economically disadvantaged backgrounds. A survey by Save the Children in 2022 found that approximately 16.8% of families expressed doubts about their children’s attainment of higher education due to financial constraints.


Edu. as a catalyst for econ. recovery

Despite these challenges, education remains a foundation for Sri Lanka’s economic recovery. A well-educated workforce is essential for driving innovation, attracting foreign investment, and fostering entrepreneurship. The Government’s initiatives to promote private higher education and attract foreign universities to establish campuses in Sri Lanka are steps in the right direction.  

Additionally, the establishment of the Port City in Colombo as a special economic zone presents an opportunity to develop a knowledge-based economy. By aligning educational programmes with the needs of emerging industries such as information technology (IT), engineering, and finance, Sri Lanka can create a skilled workforce capable of competing in the global market.


Addressing equity and access in edu.

One of the most pressing issues exacerbated by the economic crisis is the disparity in educational access and quality. Students from rural and marginalised communities often face significant barriers, including inadequate infrastructure, the lack of qualified teachers, and limited access to technology. This inequity perpetuates the cycle of poverty and undermines national unity.

To address these disparities, the Government must prioritise equitable resource allocation, focusing on underfunded schools and regions. Investments in teacher training, infrastructure development, and the provision of digital tools are essential to ensure that all students have access to quality education.


Role of tech in edu. reform

In Sri Lanka, 22.2% of households have access to a computer, meaning that roughly one in five households owns either a desktop or a laptop. In urban areas, this figure rises to 36.3%, while in rural areas, it stands at 20.2%. The estate sector reports the lowest access, with only 3.4% of households owning a computer.

Among the provinces, the Western Province (WP) has the highest rate of household computer ownership at 33.8%, while the Eastern Province (EP) has the lowest, at just 11%.

According to the Department of Census and Statistics Sri Lanka (DCS), a person aged five-69 is considered computer literate if they can use a computer independently. Similarly, digital literacy refers to the ability of a person in the same age group to independently use a computer, laptop, tablet, or smartphone.

In 2020, Sri Lanka’s overall computer literacy rate was 32%. This rate varied across sectors, with 43.5% in urban areas, 30% in rural areas, and just 12.1% in the estate sector. Among the provinces, the WP reported the highest computer literacy at 44.3%, while the EP recorded the lowest at 17.2%.

Digital literacy in Sri Lanka stood at 49.5% in 2020. It was the highest in urban areas at 65%, followed by 47.6% in rural areas and 23.1% in the estate sector.

Computer literacy in Sri Lanka is the highest among individuals aged 15-19, while digital literacy peaks in the 20-24 age group. This indicates that both computer and digital literacy are notably higher among the youth population in the country.

Furthermore, data from the DCS shows that computer literacy is relatively high among the unemployed population. 79.2% of unemployed individuals aged 24-29 are computer literate. Overall, the computer literacy rate among unemployed people in Sri Lanka stands at 64.3%.

In Sri Lanka, 72.7% of English speakers are computer literate, compared to 39.7% of Sinhala speakers and 32.3% of Tamil speakers. A similarly high level of computer literacy (74%) is observed among individuals with educational qualifications of GCE A/L or higher.

Schools and universities are the primary sources of IT training across the urban, rural, and estate sectors. However, a significant number of individuals in both urban and rural areas have also acquired computer skills through self-learning, according to the DCS.

A gender gap in computer literacy is evident, with 33.9% of men being computer literate compared to 30.4% of women. This gap extends to digital literacy as well, where 53% of men are digitally literate, compared to 46.2% of women.

The data also highlights a continuing shift from desktop and laptop use towards smartphones. Among 34.4% of the population aged five-69 who use the internet, 75.6% access it via smartphones, illustrating the growing dominance of mobile technology in the country.

In Sri Lanka, the 20-24 age group has the highest rate of internet and email usage, with 73.5% using the internet and 37.3% using email.

According to Internet World Stats (2021), Sri Lanka ranks as the third lowest in South Asia in terms of internet user numbers. 

In the digital age, integrating technology into education is crucial for enhancing learning-related outcomes and preparing students for the future workforce. However, the current state of technological infrastructure in Sri Lankan schools is inadequate. As of 2017, only 55% of schools had computer facilities, highlighting the need for significant investment in digital education.

The Government’s efforts to introduce subjects like artificial intelligence and climate change into the curriculum are commendable. However, these initiatives must be supported by adequate resources, including trained educators and technological infrastructure, to be effective.


Policy recommendations for strengthening edu.

To pull education as a tool for economic recovery, the following policy recommendations are proposed:

  • Increase investment in education: Allocate a higher percentage of the GDP to education to improve infrastructure, teacher salaries, and learning materials.
  • Promote public-private partnerships: Encourage collaboration between the Government and the private sector to enhance the quality and accessibility of education.
  • Focus on rural and marginalised communities: Implement targeted programmes to address the specific needs of students in underprivileged areas.
  • Integrate technology into education: Invest in digital infrastructure and training to prepare students for the digital economy.
  • Align education with labour market-related needs: Develop curricula that are responsive to the demands of emerging industries and global trends.


Conclusion

Education is not merely a sector to be preserved during times of crisis; it is a strategic investment in Sri Lanka’s future. By addressing the current challenges and implementing comprehensive reforms, Sri Lanka can transform its education system into a powerful engine for economic recovery and sustainable development. The path forward requires a collective commitment from all stakeholders — the Government, educators, parents, and the private sector — to prioritise education as a fundamental pillar of national progress.


(The writer is a Professor in Management and Organisation Studies at the Colombo University’s Management and Finance Faculty)

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The views and opinions expressed in this article are those of the author, and do not necessarily reflect those of this publication


Table 1: Infrastructure deficiencies in SL schools



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