Increasing national productivity is futile when citizenry bucks the system and refuses to save itself

For decades, Sri Lanka has teetered on the edge of a precipice, fuelled by a dangerous cocktail of systemic political failure and a quiet, creeping social paralysis. We speak of the “economic quagmire” as if it were a natural disaster, a sudden flood, or an act of God, rather than what it truly is: the inevitable result of a collective erosion of responsibility. While the halls of power in Colombo certainly bear the brunt of the blame for decades of fiscal mismanagement, a harsh truth remains unspoken in the tea shops and the cocktail circles across the island. The Government cannot save a citizenry that refuses to save itself. While the prevailing Sri Lankan psyche is deeply entrenched in a mentality of entitlement, we, the citizens, suffer from the myth of the sovereign saviour. We have been conditioned to view the state as an infinite provider, a paternalistic entity responsible for everything from subsidised rice and electricity to guaranteed lifetime employment, regardless of output. This “subsidy culture” has birthed a stagnant status quo where demand for ‘rights’ far outpaces the fulfillment of duties. We demand world-class infrastructure and stable currency, yet we tolerate a public sector bloated by patronage, professionals who withdraw services at the drop of a hat, and a private sector lacking competitive urgency. It is time we recognised that higher productivity is the only way out. The chasm between our current insolvency and future prosperity can only be bridged with the bricks of national productivity. This is not a mere buzzword. It represents a mathematical necessity.

Nation transforming its resources 

National productivity is the sum of every hour worked, every innovation sparked, and every process optimised. It is the engine of a country’s standard of living. In the simplest sense, it measures how efficiently a nation transforms its resources, i.e. labour, capital, and natural assets, into valuable goods and services. High productivity enables a society to produce more with the same or fewer inputs. When a country improves its productivity, it creates a “virtuous cycle.” Increased efficiency leads to lower production costs, making local goods more attractive in international markets. This generates export and other revenues, which governments can reinvest into infrastructure, education and training, research and development, public transport and healthcare, to name a few. This is the only sustainable way to increase real wages and corporate profits simultaneously. Moreover, productivity acts as a hedge against inflation. When the supply of goods increases due to efficiency and better leverage of costs, prices remain stable even as incomes grow. National productivity is not just an economic metric. It reflects a country’s ability to “see the invisible” opportunities for improvement and ensure long-term prosperity and a higher quality of life for its citizens. For Sri Lanka to remain competitive globally, productivity must transcend mere volume. While a focus on innovation and sophistication is essential, there must be, firstly, a paradigm shift in our mindsets, attitudes, work ethic, and public spiritedness. 

While the Government must pivot from being a clumsy micro-manager to a streamlined enabler through a meritocracy that rewards talent over kinship and transparency over “deals”, the citizens must shed the lethargic cloak of entitlement and must don the garb of conscientiousness, transparency, and commitment. These must be viewed as acts of patriotism and not mere favours. When a clerk processes a file in ten minutes instead of two hours, or when an entrepreneur prioritises quality over a quick buck, the national needle moves.

Sri Lanka at a crossroad 

Our country is at a crossroad where “business as usual” is a death sentence for our economic sovereignty. As a true partnership, the Government must provide a stable, corruption-free framework, and the citizens must provide the engine. We need a radical shift from a culture of dependency to a culture of delivery. Sustainable economic liberation will not come from the next IMF tranche or a foreign loan. It will come when 23 million people decide that their personal output is the ultimate currency of the nation. The insistence on entitlement must be replaced by the rolled-up sleeves of a nation ready to work its way back to dignity.

In a period of just over three-quarters of a century, the narrative of Sri Lanka’s development has been written in the halls of parliament. Yet the true ink of progress resides in the character of us, the citizens. While it is natural and tempting to view the nation’s prosperity as a purely top-down endeavour where our aspirations are reduced to checkboxes for the state to tick, we, as citizens, are miles away from the spirit of- “Ask not what your country can do for you; ask what you can do for your country,” the famous line from John F. Kennedy’s 1961 inaugural address which called for civic action, responsibility, and public service over passive reliance on the Government. Be that as it may, it is time that we recognise that while the Government holds the levers of structural reform, those levers are attached to a machine that only moves when fuelled by the collective will and ethical evolution of its citizens. 

Right now, there is a serious disconnect between the high expectations placed upon the state and the level of individual contribution toward national growth. While citizens are quick to demand efficient state services, lower taxes, effective infrastructure, and subsidies, there is a visible lack of momentum in increasing individual productivity or fostering a competitive work ethic. As alluded to earlier, Sri Lanka’s wealth is fundamentally tied to its output. Yet systemic reliance on Government intervention has stifled the drive for individual innovation and self-sufficiency. When the public looks outward to solutions rather than inward at their own professional standards or entrepreneurial spirit, the result is a stagnant economy. True transformation remains elusive as long as the demand for rights continues to outpace the fulfillment of civic and economic duties. Progress requires a shift from passive reliance to active participation.

Micro-shortcuts 

Let us introspect. While we cry for the elimination of bribery and corruption and while the National People’s Power (NPP) Government has made, and is making, real efforts to eradicate it, these efforts are being thwarted by a non-meritocratic culture that we have entrenched, and continue to nourish, by “micro-shortcuts”, all in the name of getting things done. 

The veneer of “getting things moving” masks a deeper rot. While we demand systemic reform from the top, we simultaneously sabotage the foundation through a thousand daily betrayals of merit. Our culture is currently suffocating under a blanket of “favours” and “gestures” that, while framed as harmless navigation, are precise acts of civic erosion. We have weaponised the “facilitation payment,” transforming public service into a private auction. By slipping “small” fees to low-level officials for passports or permits, we are not just buying time; we are participating in the commodification of efficiency. This creates a predatory hierarchy where speed is a luxury, and the “standard lane” becomes purgatory for honesty. When we pay for the informal express lane, we ensure that resources are allocated by the thickness of a wallet rather than the urgency of a need or the merit of an application. Further, we are both victims and architects of the “referral trap.” Every time a parent leans on a high-ranking contact to bypass a competitive internship process, or a professional “recommends” a friend before a role is even advertised, the gates of opportunity slam shut for the unconnected. We prioritise “who you know” over “what you know,” turning organisations into stagnant echo chambers. Opportunities circulate within a narrow social caste, effectively lobotomising the national talent pool by locking out the more suitable candidates because they lack the right “pedigree.” We treat the law as a suggestion for the “cloutless.” Using a connection in the police force to “fix” a fine or calling a politician to ignore a zoning violation is not just a convenience; it is a declaration that the rules do not apply to us. These small-scale violations degrade the very concept of civic duty. We justify these as “survival strategies” or “looking out for family.” Yet their cumulative weight crushes national productivity. When influence outweighs integrity, the “invisible” potential of the unconnected remains untapped, and the Government’s efforts to increase productivity are negated by our own hands. If we continue to trade merit for speed, we should not be surprised when our institutions fail. We are not just participants in this system; we are its lifeblood. Once we remove the dirt from our hands, we can insist on the Government playing its role.

Transformation

To increase Sri Lank’s national productivity, the Government must transition from a consumption-led economy to one driven by competitiveness, innovation, and global integration. This requires a multi-pronged strategy that addresses structural rigidities while leveraging the country’s unique geographical and human capital advantages. The immediate lever for increasing productivity is the full digitisation of the public sector. By implementing a unified digital ID system and migrating Government services such as land registry, business licensing, and taxation to integrated e-platforms, the state can drastically reduce “red tape” and minimise administrative delays and eliminate the “speed money” culture, allowing entrepreneurs to focus on value creation rather than bureaucratic navigation.

‘Human Capital Realignment’ is a low-hanging fruit waiting to be plucked. Sri Lanka possesses a high literacy rate, yet a significant “skills gap” persists. Productivity can be boosted by, > TVET Integration: Reforming Technical and Vocational Education and Training (TVET) to align with global demands in automation, renewable energy, and high-end manufacturing, > STEM Prioritisation: Shifting university quotas toward Science, Technology, Engineering, and Mathematics to fuel the high-value services sector, and > Labor Law Reform: Modernising archaic labor laws to allow for flexible work arrangements and “flexicurity,” which protect workers while allowing firms to adapt to market cycles.

Drawing on Michael Porter’s ‘Diamond of Competitive Advantage’, the Government must move beyond being a mere regulator to being a facilitator of industrial clusters. They must facilitate a demanding local environment by encouraging high standards and by forcing local firms to innovate before they hit the global stage. Infrastructure must go beyond ‘roads’. While physical connectivity is vital, the focus must shift to “soft infrastructure” such as reliable high-speed internet, consistent energy at competitive industrial tariffs, and efficient cold-chain logistics for the agricultural sector. National productivity is often capped by the size of the domestic market. To break this ceiling, the Government must gradually remove protectionist para-tariffs that shield inefficient local industries. They must be compelled to become productive or risk the danger of scarce resources automatically flowing into more attractive and competitive sectors. The Government must encourage Global Value Chains (GVCs) by courting Foreign Direct Investment (FDI) that brings not just capital, but technology transfer and access to international supply chains, particularly in electronics and specialised textiles.

Agricultural Modernisation is another important area that can give a big bang for the buck. With a large percentage of the workforce in agriculture contributing a disproportionately low share of Gross Domestic Product (GDP), productivity gains here are essential. The state should facilitate the transition from subsistence farming to commercial agri-business by consolidating currently fragmented land to allow for mechanised farming. It must proliferate the use of precision technology by incentivising the use of ‘internet of things’ (IoT) and data analytics in crop management to increase yields and reduce waste.

Take a leaf out of Vietnam

The NPP Government can take a leaf out of Vietnam’s transformation from one of the world’s poorest nations to a dynamic lower-middle-income economy through an obsessive focus on increasing national productivity. The “Doi Moi’ Reforms of 1986 initiated by the Communist Party of Vietnam leveraged a mix of structural shifts, trade openness, and human capital investment in facilitating high economic growth, global integration, and significant poverty reduction. The primary driver of Vietnam’s productivity was the shift of the workforce from low-value subsistence agriculture to high-value manufacturing and services. By establishing Special Economic Zones (SEZs) and industrial parks, Vietnam attracted massive Foreign Direct Investment (FDI). Unlike nations that rely on raw commodity exports, Vietnam focused on assembly and manufacturing, particularly in electronics and textiles. This shift did not just move bodies; it moved skills, as workers adapted to the rigour and technical standards of global supply chains. Vietnam is now one of the most open economies in the world. Its productivity is closely linked to its participation in over 15 Free Trade Agreements (FTAs). These agreements forced local firms to compete with international standards, effectively “importing” productivity. Vietnamese enterprises adopted modern management practices and leaner production technologies to survive. Furthermore, as a participant of the “China Plus One” strategy, Vietnam absorbed manufacturing overflows, integrating deeply into the global value chains of giants like Samsung and Intel. Vietnam consistently punches above its weight in education. By prioritising primary and secondary schooling, the Government ensured a literate, numerate, and trainable workforce. This allowed the labor force to move beyond basic garment stitching into complex electronics assembly, which offers higher output per hour worked. High productivity requires the seamless movement of goods. Vietnam invested heavily in “hard” infrastructure, such as deep-sea ports (Cai Mep) and expanded highway networks connecting industrial hubs to the coast. This reduced logistics costs, which have traditionally been a “tax” on productivity. Simultaneously, the “soft” infrastructure, the digitisation of customs and administrative procedures, reduced the time-tax on businesses, allowing for the ease and speed of business. The transition from a centrally planned economy to a “socialist-oriented market economy” allowed for the emergence of a vibrant domestic private sector. By simplifying the ‘Law on Enterprises’, the Government lowered the barriers to entry, encouraging a culture of entrepreneurship. Vietnam’s journey illustrates that productivity is not an accident; it is the result of deliberate policy choices that align local capabilities with global opportunities.

Efficiency is not optional

Sri Lanka’s archaic labour laws stifle growth. Outdated regulations and an excessive holiday calendar stymie productivity, deterring foreign investment. To compete globally, we must modernise. Streamlining exits, consolidating laws, and slashing public holidays will foster a high-performance culture. Efficiency is not optional. It is the only path to national prosperity. Increasing national productivity is not just about working longer hours. It is about working smarter through better tools, clearer rules, and sharper skills. By fostering an environment where “seeing the invisible” opportunities are met with “decisive action,” the Government can create a foundation where the impossible becomes possible for the next generation of leaders.

Albeit slowly, Sri Lanka is shedding its “consumption-led” past to becoming a global production participant. As per the Digital Economy Blueprint 2026, every region will, by 2030, evolve into a “Productivity Village,” directly linking local talent to international markets. This is more than a recovery; it is a transformation. By pairing iron-clad fiscal discipline with a meritocratic workforce, we can turn a “lost decade” into an era of unprecedented efficiency. Through a synergistic alliance of proactive national governance and merit-based citizen-led innovation, Sri Lanka can forge a future of high-tech resilience and sustainable global prosperity.

 (The author is currently, a Leadership Coach, Mentor and Consultant and boasts over 50 years of experience in very senior positions in the corporate world – local and overseas. www.ronniepeiris.com)