Abstract:
The Sri Lankan IT industry, despite being one of the fastest-growing industries, faces
a pressing issue: the increasing number of IT graduates, yet a decreasing availability
of suitable job opportunities. This study aims to investigate the underlying factors
contributing to this discrepancy. Very few studies have been conducted addressing
the factors affecting the limited job opportunities in the IT sector for fresh graduates
in Sri Lanka. Therefore, it is a serious issue requiring concerted efforts, as it
significantly impacts the future of the IT industry in Sri Lanka. A qualitative approach
was used to conduct the research, utilising in-depth interviews and focus group
discussions with key stakeholders, including recent IT graduates, industry employers,
and academic representatives. Thematic analysis was employed to analyse data.
Major findings revealed that even though the Sri Lankan education sector has seen
significant growth, the job market has not expanded at the same rate. As a result, there
is a surplus of graduates, resulting in intense competition and making it difficult for
new graduates to secure entry-level positions. Additionally, the prevailing economic
situation in the country, political instability, government tax policy, and financial
crises have negatively impacted business growth and investment. The findings also
noted that employers now prefer hiring experienced professionals over fresh
graduates with limited practical exposure. To address these challenges, actionable
strategies such as fostering stronger university–industry partnerships, revising
curricula, incentivising organisations to recruit fresh graduates, and supporting
startup ecosystems can be implemented. Such measures can help align graduate
output with market demand and strengthen the employability of Sri Lanka’s future IT
workforce.
