Human development progress decelerating at alarming rate, says new UNDP report

From left: Digital Economy Ministry Acting Secretary Waruna Sri Dhanapala, Central Bank Governor Dr. P. Nandalal Weerasinghe, Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe, Chief Advisor to President on Digital Economy Dr. Hans Wijayasuriya, UNDP Sri Lanka Resident Representative Azusa Kubota, Digital Economy Deputy Minister Eranga Weeraratne, Science and Technology Minister Prof. Chrishantha Abeysena and UNDP Sri Lanka Strategic Engagement, Digital and Innovation Team Leader Fadhil Bakeer Markar  

• Advancing digital transformation and human development through artificial intelligence

For 30 years, the Human Development Index (HDI) showed a consistent increase in development progress and a decrease in inequality. Although the crises of 2020-2021 disrupted this trend, last year’s report saw tentative signs of recovery. The 2025 HDR has quashed this optimism.

Amid the ongoing global turmoil, inequality has increased for the fourth consecutive year. The situation is especially severe for countries with the lowest HDI scores, as the most vulnerable continue to fall further behind.

According to the new report, Sri Lanka’s HDI rank remains at 89, while the Gender Inequality Index has risen to 93, from 122 in 2024. The HDI measures the average achievement in three basic dimensions of human development: a long and healthy life, knowledge and a decent standard of living.

Marking a pivotal moment for digital transformation and inclusive development, Sri Lanka launched the 2025 Human Development Report (HDR) published by the United Nations Development Programme (UNDP), titled ‘A Matter of Choice: People and Possibilities in the Age of AI’.

The local launch event, which took place yesterday, was co-hosted by the Digital Economy Ministry and UNDP Sri Lanka, with the participation of Digital Economy Deputy Minister Eranga Weeraratne, Chief Advisor to President on Digital Economy Dr. Hans Wijayasuriya, Digital Economy Ministry Acting Secretary Waruna Sri Dhanapala and UNDP Sri Lanka Resident Representative Azusa Kubota, among other high-level dignitaries. 

The event served as a platform for a multi-stakeholder dialogue, bringing together over 200 participants from the government, development partners, UN agencies, the private sector, academia and civil society.

Kubota noted, “Sri Lanka’s human development journey is a story of resilience and ambition but recent years have shown us that progress cannot be taken for granted. The 2025 Human Development Report reminds us that we stand at a crossroads: one path leads to deepening divides, while the other leads to inclusive transformation. Artificial intelligence (AI) can propel human development if it is people-centred. At the UNDP, we believe AI must serve people, not replace them. This is why we are proud to have supported Sri Lanka’s first AI strategy—anchored in equity, ethics and empowerment.”

The launch event included the presentation of the key findings from the 2025 HDR, which highlighted global, regional and Sri Lanka-specific trends in the dynamic field of AI. The HDR Report 2025 explores AI’s transformative impact on human development, emphasising that the choices societies make in its design, governance and application will determine whether the technology becomes a catalyst for empowerment or a driver of exclusion.

Weeraratne stated, “AI is no longer optional; it can empower or exclude. AI is changing how we work, what skills are needed and which jobs will grow. But here’s the truth — those who are prepared will thrive. And we want Sri Lanka to be ready. If we adapt smartly, AI can be the engine for the next generation of jobs. New industries, new services and entirely new careers will emerge. Sri Lanka’s AI strategy chooses inclusive empowerment, grounded in trusted data, talent, digital infrastructure, innovation and ethics. Our goal is a US $ 15 billion digital economy by 2030. AI will be key to building a future-ready, ethical and inclusive economy for all Sri Lankans.”

The launch coincides with a pivotal moment in Sri Lanka’s digital transformation journey. Since late 2023, the UNDP has partnered with the Digital Economy Ministry and is continuing its support provided to the previous Committee on Formulating the Strategy on AI to support the formulation of Sri Lanka’s first national artificial intelligence strategy. This collaboration has involved technical assistance, policy advisory support and facilitation of dialogue among international and local experts. 

The strategy, informed by both global best practices and national development priorities, is designed to be inclusive, forward-looking and tailored to the unique needs of Sri Lanka. Throughout this process, the UNDP provided sustained support to ensure the strategy is firmly anchored in human development principles, promoting both equity and innovation at its core.