The National Enterprise Development Authority (NEDA) recently shared data showing that only 3 percent of Sri Lanka’s working population is involved in entrepreneurship. NEDA Director Dhanuka Liyanagamage called this figure “pathetic” compared to regional peers and stressed the need to promote entrepreneurship more widely in the country. Liyanagamage said that parents in Sri Lanka rarely encourage their children to pursue entrepreneurship, and even at universities, lectures focus on job opportunities rather than entrepreneurship.
However, he acknowledged that Sri Lanka has made progress, especially after the 2022 crisis, in recognizing the crucial role of entrepreneurs in the nation’s development. “People have realised the need to support entrepreneurship if we are to get out of this mess. We are still very low; only 3 percent of the working population become entrepreneurs.
This is a pathetic number compared to our regional peers. We need to increase this figure to at least 10 percent within the next 3-5 years,” Liyanagamage said. Bureaucratic red tape remains a major obstacle for local businesses, and Liyanagamage hopes the new administration will help eliminate these hurdles.
Encouraging entrepreneurship in Sri Lanka
He also pointed out that many government agencies established to support entrepreneurs sometimes work as rival organizations, leading to repetition that could be eliminated through better coordination. Liyanagamage emphasized the need for improved financial literacy among entrepreneurs.
Despite the country’s high literacy rate, many small and medium enterprise (SME) owners lack financial literacy, resulting in challenges such as limited access to finance, difficulties with business registration, and struggles with regulatory processes. “Entrepreneurship has become a popular concept, even among donors who are now increasingly directing their grants to support the sector. This is a positive development and something to be appreciated.
We hope that under the new government’s digital agency, many of these obstacles will be eliminated. As an apex institution to support entrepreneurs, we are committed to driving this initiative,” Liyanagamage said. Addressing the challenges faced by entrepreneurs in Sri Lanka requires coordinated efforts from various public and private sectors to create a more supportive ecosystem.
With increased government support and a cultural shift towards valuing entrepreneurship, there is hope for significant progress in the coming years.
