Skills development is an important component of national development strategies in both developed and developing nations. A skilled and readily trainable labour force is critical for participation in the global economy. Policies related to education, skills development, and labour markets, are often considered important aspects of the economic policies in many countries. Despite remarkable achievements in improving access to primary and secondary education, the country’s growth and competitiveness is constrained by the low skills levels of its population. The study aims to inform education authorities about critical policy issues on the demand and supply of skills; and, engage the Government of Sri Lanka and key stakeholders in an informed dialogue on policy directions and options for development of the Government’s skills development strategy, to achieve the Government’s vision of a competitive middle income country.