Sri Lanka has emerged as one of South Asia’s most AI-exposed economies, with strong growth in artificial intelligence–related jobs but also mounting risks of job displacement, according to the World Bank’s South Asia Development Update: Jobs, AI, and Trade (October 2025).
The report’s latest chapter, “Artificial Intelligence, Real Impact: Labor Market Implications of AI Adoption in South Asia,” finds that Sri Lanka and Bhutan have the highest AI exposure in the region, reflecting their relatively skilled and educated workforces.
“Within South Asia, exposure varies by country: Nepal has the lowest average exposure, while Bhutan and Sri Lanka exhibit the highest exposure rates, reflecting their relatively more skilled and educated workforces,” the report states.
However, the World Bank warns that Sri Lanka ranks lowest in AI–human complementarity, suggesting that more jobs could be displaced if AI adoption outpaces worker reskilling efforts.
“Within South Asia, India ranks highest in the share of exposed jobs that are complementary, while Sri Lanka ranks lowest. These estimates suggest that about 15 percent of jobs in South Asia, and 28 percent of total labor earnings, are exposed in a highly complementary manner and may therefore reap substantial productivity gains from AI adoption.”
Sri Lanka Among Top ChatGPT Users in South Asia
The World Bank’s analysis of generative AI adoption also included ChatGPT usage per capita. While exact figures are not specified, the chart shows that Sri Lanka ranks second in South Asia — below the Maldives but ahead of India, Bhutan, Bangladesh, and Nepal — in the number of ChatGPT users per capita, according to the report.
AI Jobs Surge in Sri Lanka
Sri Lanka’s AI-related job market is expanding faster than any other in South Asia. In 2025, 7.3 percent of all white-collar job postings required AI-related skills, the highest share in the region, surpassing India’s 5.8 percent. These jobs are concentrated in urban, professional, and ICT service sectors.
“Job listings data indicate rapidly growing demand for AI skills, driven primarily by an explosion of demand in India and Sri Lanka,” the report adds, noting that “jobs that require AI skills command a wage premium of nearly 30 percent over other white-collar jobs” (p. 30, 37).
Risks of Displacement and Inequality
While AI offers major productivity gains for sectors such as finance, ICT, and professional services, the World Bank warns that entry-level and mid-skilled jobs are most at risk of automation. Call center agents, proofreaders, and software developers face slowing demand as firms integrate AI tools.
“Only 7 percent of jobs are highly exposed with low complementarity, and therefore at increased risk of displacement,” the report notes, while about 15 percent of jobs “may reap substantial productivity gains from AI adoption” (p. 33–34).
Policy Imperatives
To ensure that AI becomes a driver of inclusive growth, the World Bank calls on Sri Lanka and its neighbors to strengthen the foundations for digital transformation.
“South Asia could strengthen the foundations for maximizing the benefits of AI by raising the share of skilled workers and ensuring reliable electricity, as well as consistent and fast internet access,” the report emphasizes (p. 27).
It also recommends greater investment in STEM education, digital literacy, and labor mobility reforms to help workers transition into new AI-augmented roles and prevent the outmigration of high-skilled talent.
Accordingly, as one of South Asia’s most AI-engaged economies, Sri Lanka stands at a crossroads. The country’s skilled workforce and strong ICT base position it to benefit significantly from AI-driven productivity growth—but without decisive policy action, the same forces could exacerbate inequality and displace young, moderately educated workers.
Source:
World Bank. South Asia Development Update: Jobs, AI, and Trade — Chapter 2: Artificial Intelligence, Real Impact: Labor Market Implications of AI Adoption in South Asia. October 2025.
