For youth who leave school and enter the labour market, a quick transition to productive employment is increasingly being recognized as important for reducing poverty in later life, improving well-being and optimizing returns to investments in education and health. A speedy school to work transition also provides work experiences and develops inter- personal skills of individuals improving their productivity and employability in later life. A better understanding of the challenges faced by youth in finding productive employment is a key to improving youth labour market outcomes. The research examines the trends in key labour market indicators to highlight these challenges faced by youth in Sri Lanka.