The National Enterprise Development Authority (NEDA) recently revealed that only 3 percent of Sri Lanka’s current working population is engaged in entrepreneurship. NEDA Director Dhanuka Liyanagamage shared this figure during the launch of Global Entrepreneurship Week 2024 at the Chambers of Commerce. Liyanagamage described the statistic as “pathetic” compared to Sri Lanka’s regional peers.
He emphasized the need to promote and adopt entrepreneurship on a larger scale, especially after the 2022 crisis, to understand the vital role of entrepreneurs in national development. “Parents in Sri Lanka encourage their children to pursue higher education, but rarely entrepreneurship. Even at the university level, we discuss job opportunities but not entrepreneurship,” Liyanagamage said.
“However, things are changing. People realize the need to support entrepreneurship to improve our economic situation. We need to increase this figure to at least 10 percent within the next 3-5 years.”
Liyanagamage pointed out that bureaucratic red tape remains a significant challenge for local businesses.
He expressed hope that the new administration would help eliminate these obstacles.
Promoting entrepreneurship in Sri Lanka
Despite the existence of several public institutions meant to support entrepreneurs, a lack of coordination and repeated efforts are hampering effective initiatives.
“There are about 50 government agencies established to support entrepreneurs. Unfortunately, these often function as rival organizations, invading each other’s territories and causing unnecessary repetition,” Liyanagamage stated. He emphasized the need for a paradigm shift among entrepreneurs.
While Sri Lanka boasts a high literacy rate, financial literacy is still low, especially among small and medium enterprise (SME) owners. This gap fuels major challenges such as limited access to finance, difficulties with business registration, and regulatory processes. “Entrepreneurship is becoming a popular concept, with donors increasingly directing their grants to support the sector.
This is a positive development. We hope that under the new government’s digital agency, many of these obstacles will be eradicated. As an apex institution to support entrepreneurs, we are committed to driving this initiative,” he concluded.
