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Dr. H. R. Anulawathie Menike

Senior Lecturer, Department of Economics, University of Kelaniya, Sri Lanka


Each country would undergo a period comprising of a “window of opportunity” or a “demographic bonus” during the age structure transition. The window of opportunity or demographic bonus would have a positive impact on economic growth. At present, Sri Lanka is enjoying a demographic dividend of a strong and young work force. In the last few decades, Sri Lanka has experienced major demographic changes. From a young age structure, the population is gradually shifting to an older distribution. The transformation in the population age structure can have important impacts on economic growth. This paper makes an attempt to study the age structure transition and demographic bonus in Sri Lanka. The study reveals that Sri Lanka was unable to achieve a significant level of development since it has failed to take the maximum contribution of increased labour force. The dividend will not be long time since the elderly dependency is increasing rapidly. Therefore, this is an opportunity that needs to be used immediately.

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