With the number of elderly dependents growing faster than the working age population, Sri Lanka will need to create fewer new jobs than it has historically done – just under 30,000 each year – for the next two decades. It is easier to absorb new entrants into jobs of lower productivity. However it will be more challenging, but critical, for Sri Lanka’s future success to meet its people’s rapidly rising aspirations by creating jobs of higher quality. This, then, is the crux of Sri Lanka’s employment challenge. Although the number of new jobs required to be created is less than before, their quality needs to be much better.