(Karunatilake, 2006) has found that Labour is the basic but most complex factor of production. It is basic, because at least a minimum level of labour is at the foundation of economic growth. It is complex, because, unlike other factors of production, it responds to changes in the surrounding working environment. Population growth is slowing down and will reach zero level before long. Consequently, the population is aging and the labour force is shrinking resulting in a rising elderly dependency ratio that would pose increasing strains on limited resources including active labour available for long term development projects. The incidence of low labour force participation rates and wide spread underemployment rates at high levels indicate the lack of opportunities, infrastructure and facilities for people to offer their maximum possible contribution to economic progress. Delays in structural implementation of infrastructure projects and required institutional changes have resulted in this grave situation, which the nation cannot afford to continue with.
Sri Lanka Labour Force Survey (2016) was designed to measure the levels and trends of employment, unemployment and labour force in Sri Lanka. This sur vey is being conducted quarterly, since the first quarter of 1990. This quarterly survey of households is conducted through a scientifically selected sample designed to represent the civilian non-institutional population. Respondents are interviewed to obtain information about the employment status etc. of each member of the household 15 years of age and older. The field work of the survey is done during the third week of each month, Monday through Sunday. This is known as the “survey week”. The inquiry relates to activity or status are referred in the preceding week of the survey week; referred
to as the “reference week. This article provides the methodology and the summery of annual and quarterly aggregates of LFS for the period from 2011 onward. Further, the report comprises the reweighted estimates for age 15 years and above household population (the working age population), labour force, employment and unemployment for the study