Sri Lanka Human Capital Summit recommendations; talent retention key for growth

The Sri Lanka Human Capital Summit (SLHCS) 2024, held on 18 July in Colombo, was a pivotal event that brought together policymakers, industry leaders, and experts to explore the challenges and opportunities in human capital development as Sri Lanka transitions to an efficiency-driven economy. This summary captures the key insights and recommendations from the summit, focusing on practical solutions for immediate implementation, including educational reforms, technological investments, and infrastructure development. The aim is to build a resilient, skilled, and adaptable workforce that will lead Sri Lanka toward a prosperous future.

The summit concentrated on five key sectors: Tourism, Information Technology, Financial Services, Startups, and the Public Sector. The following summary encapsulates the primary outcomes, strategic recommendations, and insights from the summit.

Tourism sector

The summit identified the tourism sector as having significant growth potential, provided that workforce skill gaps are addressed and conditions for talent retention are improved. Key recommendations include developing specialised education and certification programs tailored to the tourism industry’s needs. There is also a call to implement inclusive workforce programs and strengthen public-private partnerships to better align skills with industry demands. Facilitating international knowledge transfer and focusing on career advancement are essential strategies for retaining skilled professionals and enhancing sector performance.

Information Technology sector

Sri Lanka’s IT sector is on the verge of major growth but faces challenges such as brain drain, high salary expectations, and a disconnect between training programs and industry needs. The summit advocated for a revamp of IT education, emphasising curricula that align with industry requirements and offering flexible learning formats. Enhancing global talent recruitment through improved visa policies and living conditions is crucial. Addressing the IT skills gap through partnerships between education institutions and industry, along with fostering a culture of continuous learning and adaptability, are critical for maintaining the sector’s competitive edge and driving digital transformation.

Financial services sector

The financial services sector is vital for economic stability but faces challenges related to talent competition, skills-based hiring, and promoting inclusive leadership. The summit recommended developing talent retention programs that emphasise career growth and flexible work arrangements. Shifting towards skills-based recruitment and investing in AI-enhanced up skilling are seen as essential for aligning talent with industry needs. Promoting inclusive leadership with a focus on diversity and multi-generational adaptability, partnering with educational institutions to align finance curricula with industry needs, and advocating for strategic government support are key steps to enhance sector competitiveness.

Startups sector

Sri Lanka’s growing startup ecosystem presents opportunities to better align talent with startup needs, improve talent retention, and expand access to investment. The summit highlighted the need to establish startup zones with tailored legal and infrastructure support and to invest in AI and tech education to build a robust digital ecosystem. Improving early-stage funding and incentives for startup founders, creating a Bureau of Repatriation to attract global talent, and advocating for supportive Government policies are crucial for fostering innovation and entrepreneurship in Sri Lanka.

Public sector

The public sector is essential for economic stability but faces challenges in optimising workforce size, enhancing skills, and leveraging technology. The summit stressed the need for a strategic workforce plan to optimise staffing and a revamp of the education system to emphasise STEM and entrepreneurship. Implementing performance management systems, advancing leadership and professional development, and adopting advanced digital tools are identified as key strategies for improving productivity and efficiency in the public sector.

Leadership insights

The leadership panel emphasised the need for an overhaul of the education system to focus on practical skills, continuous skill development, and strategic talent retention. Strong industry-academia links and increased female workforce participation were highlighted as crucial for enhancing workforce diversity and inclusivity. These insights align with global human capital trends, which stress balancing productivity with human performance and addressing the imagination deficit in workforce development.

SLHCS 2024 provided a crucial platform for addressing Sri Lanka’s human capital challenges. The strategies and recommendations offered serve as a roadmap for advancing human capital development, aiming to build a resilient and skilled workforce capable of driving economic growth and enhancing global competitiveness. Implementing these recommendations will be essential for achieving long-term prosperity and stability for Sri Lanka.