Financial stress keeps Gen Z from having children

Sri Lanka is witnessing a troubling demographic shift as young adults delay marriage and childbirth, largely due to mounting economic pressures, according to experts speaking at the launch of the 2025 World Population Report by the United Nations Population Fund (UNFPA).

Professor Lakshman Dissanayake, former Vice Chancellor of the University of Colombo, warned that Gen Z, the generation born between 1997 and 2012, is increasingly postponing childbearing due to rising living costs, job insecurity, and financial instability—a trend that risks pushing the country into a “sub-fertility trap.”

“Young couples want more children but the system is failing them. Fertility is dropping not because values have changed, but because economic structures have,” Prof. Dissanayake said.

The concern comes amid data from the Department of Census and Statistics, which confirms that Sri Lanka’s population growth rate has fallen to a record low of 0.5%, the lowest since 1871.

In the Colombo District, the annual growth rate has dropped from 1.43% to just 0.17%.

UNFPA figures also show that Sri Lankan women now average only 1.9 children, below the replacement level of 2.1.

The 2025 report, titled “The Real Fertility Crisis,” outlines the dramatic demographic reversal seen in Sri Lanka and many parts of the world – from a population explosion in the 1900s to a potential population collapse in the 21st century.

“Sri Lanka’s population is ageing, birth rates are down, and the workforce is shrinking. Rising expenses and limited employment opportunities are making matters worse,” Deputy Minister of Health and Mass Media Dr. Hansaka Wijemuni said.

A testimonial cited in the report captures the prevailing sentiment among many young parents: “I have one child but don’t plan on having any more. I can’t afford it—housing, education, childcare… everything is too expensive.”

Experts warn that unless the state implements supportive policies such as affordable housing, job creation, and subsidised childcare, Sri Lanka may face long-term consequences including a reduced workforce and economic slowdown.