Sri Lanka is leading South Asia in the race for AI-related jobs, but it might also be heading towards a sharp cliff edge. According to the World Bank's October 2025 South Asia Development Update, the island nation shows the highest AI-related job growth in the region, yet it lags in one critical area: readiness to adapt.
A Regional Leader in AI Job Growth
This year, 7.3 percent of white-collar job postings in Sri Lanka required AI-related skills—more than any other South Asian country. Even India, with its mammoth digital economy, clocked in slightly lower at 5.8 percent. The data paints a compelling picture: Sri Lanka's urban ICT hubs are quickly becoming fertile ground for AI-driven employment.
AI roles in the country are concentrated in cities and clustered around professional services, finance, and information and communications technology. As the World Bank notes, this is largely driven by the nation's relatively skilled workforce and robust tertiary education pipeline. These jobs don’t just exist—they pay well. Roles requiring AI expertise command a nearly 30 percent wage premium over other white-collar positions.
High Exposure, Low Cushioning
The World Bank’s findings are clear: while Sri Lanka is among the most AI-exposed economies in South Asia, it is also the most vulnerable to disruption. The key metric is "complementarity"—the extent to which human roles evolve alongside AI tools, rather than being replaced by them.
India scores highest on this index, with many AI-exposed jobs deemed complementary and ripe for productivity gains. Sri Lanka, by contrast, ranks lowest. This suggests that unless upskilling catches up, AI adoption could outpace the workforce’s ability to adapt, leaving entry-level and mid-skilled workers behind.
The most vulnerable? Call centre agents, proofreaders, and even software developers. These roles are increasingly being reshaped or rendered redundant by AI platforms.
ChatGPT and the Sri Lankan Consumer
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In an intriguing metric, the report tracked ChatGPT usage per capita across South Asia. Sri Lanka comes in second, just after the Maldives. While the World Bank didn't release the exact numbers, this data point is telling. It reflects a digitally curious, engaged, and increasingly AI-literate population.
This high level of engagement with generative AI tools like ChatGPT aligns with the growth in AI-related job postings. It shows that the demand isn’t just employer-led; individuals are also exploring and experimenting with AI at scale.
The Policy Challenge
Sri Lanka's challenge now is less about seizing AI opportunities and more about cushioning the blow. The World Bank underscores that only 7 percent of South Asian jobs are highly exposed and low in complementarity—but Sri Lanka may disproportionately occupy this segment.
The risks are as much economic as they are social. Without intervention, AI may deepen inequalities, benefiting high-skilled professionals while leaving behind youth and moderately educated workers.
The solutions, while straightforward on paper, require bold execution:
- STEM and digital education investment to build a workforce resilient to automation
- Labour mobility reforms to help workers transition between sectors
- Infrastructure upgrades, especially for reliable electricity and high-speed internet
- Incentives to retain high-skilled talent and counteract brain drain
An AI-Infused Crossroads
Sri Lanka now sits at a pivotal junction. It can become a beacon for AI-enabled growth in South Asia or slide into a more polarised labour market. The current trajectory signals promise: a skilled population, thriving job demand, and high digital engagement.
But promise without preparation is peril.
The next 18 months will be crucial. Will Sri Lanka build the policy scaffolding necessary to ensure AI augments its workforce rather than eroding it? Or will it become a cautionary tale in the global AI economy?
You can read the full World Bank report on the South Asia Development Update here. For further insights into the region's AI landscape, consider our article on APAC AI in 2026: 4 Trends You Need To Know.
Latest Comments (3)
This is fascinating! It makes me think about the Philippines. We're also seeing a boom in tech, but the 'readiness to adapt' part for Sri Lanka really hits home. It’s like, we're all scrambling for these AI jobs, but are we truly prepared for the upheaval and re-skilling needed? This report highlights a real challenge for many developing nations in this part of the world.
Interesting! I've seen so many talented Sri Lankan techies here in Bengaluru; guess that AI job growth makes sense. But the "readiness" part is a worry.
Interesting report from the World Bank. It's great to see Sri Lanka making strides in AI job growth, really commendable for a small nation. However, I can't help but feel a bit skeptical about the "readiness to adapt" part. Growth in job postings is one thing, but if the infrastructure, education system, and overall societal preparedness for these roles aren't keeping pace, then that cliff edge mentioned could be quite real. We've seen similar patterns in other developing economies where the hype outruns the practical groundwork. Let's hope they're not just creating jobs for a few without the broader foundational support.
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