COLOMBO, Sri Lanka, August 18, 2025 (ePRESS) – Artificial Intelligence (AI) has the potential to greatly increase worker productivity in Sri Lanka, but a lack of digital skills and infrastructure may hold back progress, a new survey by the Institute of Policy Studies (IPS) has warned.
The IPS study estimates that around 1.83 million workers – about 23% of Sri Lanka’s labour force – are in jobs that could be integrated with Generative AI (GenAI) at different levels. Educated workers are the most likely to be exposed to AI tools.
However, the report highlights major challenges. Only 480,543 workers, or 26.3% of those exposed, are digitally literate and work in offices with proper digital facilities. This means a large part of the workforce is not yet ready to fully benefit from AI technology.
“Industries must adopt strategic measures if they want to use AI to improve productivity,” the IPS blog noted.
AI is already changing how people work. For example, online education materials can be created within minutes using AI by simply entering text. Similarly, AI can act as an editor or content writer, cutting down the time needed to prepare reports.
The survey stressed that almost every sector now has examples of AI enhancing efficiency. Companies that encourage AI use in their operations will remain competitive and see faster productivity growth.
Experts believe that as AI spreads across more job fields, it will not only improve worker output but also reshape the labour market. While fewer workers may be required for some roles, AI could also create new jobs in the future, the report said.
