The study shows that the loss of active life due to mortality in Sri Lanka has shown a clear downward trend during the period from 1968 to 2001.The analysis also reveals that in order to improve labour productivity of the workforce through healthcare, health policies and programmes should focus on reducing mortality caused by diseases that affect the young population who are more educted and have more years of working life. It is equally important to take note of the health issues of the working population over 45 years of age who are the more experienced and skilled segment of the workforce and who are more likely to suffer from degenerative diseases. Thus, health programmes should also make provision to screen the older segment of the workforce for degenerative diseases, particularly for hypertension and diabetes and provide treatment as a means to secondary prevention of disability and death.