Onset and cessation of demographic window of opportunity: capitalizing economic take-off before demographic turbulence in Sri Lanka

The pyramid shaped population age structure of Sri Lanka is now turning to a shape of a barrel. The age structure transition, covering the period of 1991 to 2030, has produced a demographic window of opportunity, which is conducive for an economic take-off in the country. During this period, the proportion of the people in the working ages (aged 15-59/64 years) is noted to be significantly larger than the proportion in the dependent age categories (aged less than 15 and 60/65 years and above). Nevertheless if the working age is defined as 15-59 years, the most lucrative part of the demographic window would fade away by 2017. Thus the remaining period of the dividend will be as short as only five years. The mere existence of a favourable demographic dividend would not be effective without a proper environment for economic acceleration. Nevertheless in a congenial environment of political stability, adequate savings, investment potential including the ability to draw FDI, development of human capital, productivity and knowledge based economy, the optimum utilization of the demographic window to gain economic acceleration would materialize. Failing to capitalize this best demographic environment immediately along with the rapid aging process, the Sri Lankan planners will encounter with demographic turbulence in the near future.