Mar 25, Colombo: Professor Indralal de Silva, the Head of the Department of Demography, University of Colombo, says that Sri Lanka is experiencing a demographic bonus that would help the country's economy to take off if used properly.

Professor de Silva said that with the least number of dependants and the highest number of people in the working ages, if the country can allow sufficient working opportunity, the take off is guaranteed. He made these comments at a seminar organized by the Ceylon Chamber of Commerce under the title “Changing Composition of Sri Lankan Population, How it will affect your Business”, in Colombo yesterday evening.

According to Professor de Silva, Sri Lanka’s population will increase in the coming decades and reached to a peak of 21.9 million by the year 2031. Thereafter stabilization will be there for a short period and a decline will follow, he said. Therefore, the business enterprises must have an idea on the demographic changes in the country since it will affect the production and the marketing of the goods and services.

Taking an example from the real estate sector, the professor predicted that the demand for new houses would encounter a decline as the number of available houses will be more than enough for the population within the next 30-40 years.

The dependency rate for Sri Lanka for 2006 was recorded as 52.6% and the professor said the number will increase in the future. This phenomenon known as demographic bonus is highly conducive for economic take off and will not reappear again he said. He highlighted that new industrial countries such as Hong Kong, South Korea, Taiwan, Malaysia, and Singapore have successfully used this opportunity to boost their economies.