Business
Unlocking the potential of MSMEs vital for post-Covid 19 recovery
By K.D.D.B.Vimanga
Sole proprietorships account for 63.1% of all businesses in the country,1 and account for 27.1% of national employment.2 Their contribution to the Sri Lankan economy is significant, and subsequent lockdowns due the pandemic have had an adverse impact on these small businesses. At present, we are unable to map out as to how many small businesses would be completely put out of business, but given that the department of labour has estimated (from a survey of 2,764 establishments) that 52.15% or 764 of firms, employing under 1 to 15 employees have closed down,3 it is likely that small businesses have also been hit hard.
However successive Sri Lankan governments have failed to strategize on the potential of these enterprises to Sri Lanka’s economic development. Emerging markets such as Vietnam have been able to capitalise on the potential of these businesses to accelerate economic growth4. Any hope of inclusive economic growth for Sri Lanka’s post covid recovery can only then be achieved if we utilize this sector, unlock their potential and empower them to grow, compete and thrive. While there is a lot of work to be done in terms of policy reform in this area, there are a few low hanging fruits, namely rehauling the business registration process, and bridging the digital divide.
In the form of a multi-part series, the Advocata Institute in partnership with LIRNEasia will provide an in depth analysis of these two vital policy tools to empower Sri Lanka’s small businesses.
Sri Lanka’s business ecosystem
According to the listing operation of Economic Census conducted in 2013/ 2014 the number of SMEs in Sri Lanka most of which are categorized as sole ownerships accounts for 1,019,681 of which 71,126 are small enterprises and 10,405 are medium scale enterprises.5 This number only represents enterprises that have registered under the above criteria. However according to the same survey there are 3 million people who engage in a similar SME related industry, trade or services. 45% of the micro enterprises and 10% of small enterprises remain unregistered. Overall, 42% of business establishments remain unregistered while 25% of these establishments are run by women entrepreneurs. In other words, informality is still high.
According to a survey done by LIRNEasia 40% of SMEs reported using the internet or social media for business; much of this use was limited to information seeking, rather than transactional use. Those who used the internet for business thought that access to the inteenet is either important or very important, while those who did not use the internet remained unconvinced of its benefits: most said there was ‘no need’ to use the internet. Few SMEs were capable of taking any form of card payment at the time of survey, and the majority of SMEs did not use mobile money services. This research points to a serious digital divide restricting the potential of Sri Lanka’s small businesses. This would be tackled comprehensively during next week’s Op-Ed outlining the serious implications of the digital divide.
K.D.D.B.Vimanga is Policy and Advocacy Executive at the Advocata Institute. He can be contacted at kdvimanga@advocata.org.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
