Sri Lanka has emerged as one of South Asia’s most AI-exposed economies, showing rapid growth in artificial intelligence–related employment but also facing rising 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,” highlights that Sri Lanka and Bhutan have the highest exposure to AI 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,” the report notes.
However, despite high exposure to AI, the World Bank warns that Sri Lanka ranks the lowest in “AI–human complementarity.” This means that while many Sri Lankan jobs are affected by AI, fewer of them are likely to benefit from technology working alongside humans. Without adequate worker reskilling, this could result in significant job losses.
“India ranks highest in the share of exposed jobs that are complementary, while Sri Lanka ranks lowest,” the report states. “These estimates suggest that about 15 percent of jobs in South Asia, and 28 percent of total labour earnings, are exposed in a highly complementary manner and may reap productivity gains from AI adoption.”
The World Bank also analysed regional adoption of generative AI tools like ChatGPT. Per capita, Sri Lanka ranks second in South Asia — behind only the Maldives and ahead of India, Bhutan, Bangladesh, and Nepal — in terms of ChatGPT usage, underscoring how quickly AI tools are being embraced locally by professionals and students.
Sri Lanka’s job market for AI-related roles is expanding faster than anywhere else in South Asia. In 2025, 7.3 percent of all white-collar job postings in Sri Lanka required AI-related skills — the highest in the region, surpassing India’s 5.8 percent.
These opportunities are mostly concentrated in urban areas, particularly within ICT, finance, and professional services. The report also highlights that AI-skilled professionals earn nearly 30 percent more than others in comparable positions.
While AI is driving efficiency in high-skilled sectors, it also poses a threat to entry-level and mid-skilled employment. Call centre operators, proofreaders, and software developers are among those facing declining demand as firms adopt AI automation tools.
The report estimates that 7 percent of jobs in South Asia are “highly exposed with low complementarity,” meaning they face a high risk of replacement by AI systems. In contrast, about 15 percent could benefit from higher productivity and new opportunities if managed strategically.
To ensure that AI becomes a tool for inclusive growth, the World Bank urges South Asian nations — including Sri Lanka — to strengthen their digital foundations.
“South Asia could maximise the benefits of AI by increasing the share of skilled workers and ensuring reliable electricity and fast, consistent internet access,” the report advises.
The report also calls for stronger investment in STEM education, digital literacy, and labour market reforms to help workers transition into AI-augmented roles and prevent brain drain among skilled youth.
As one of the region’s most AI-engaged economies, Sri Lanka stands at a crucial juncture. Its strong ICT base and educated workforce position it to benefit from AI-driven productivity gains. However, without timely investments in reskilling and digital infrastructure, these same advances could widen inequality and displace thousands of moderately skilled workers.
Source: World Bank – South Asia Development Update: Jobs, AI, and Trade (October 2025).
