Unleash economic value in Sri Lanka

• Start up the start up force multiplier

Imagine a young 28-year-old Chathura sitting in Mahiyangana area running his own global logistics solution – one that’s home grown and created by Moratuwa University graduates. Or Ambika sitting in Mullaitivu running her own agri-based business catering to the full island, and beyond into South Asia. And both getting evaluated by global VCs at $ 1 billion each. The country’s first unicorns. 

Is this just a dream? Or can this really happen?

Sri Lanka is in economic trouble. With the country in debt and needing $ 6 billion this year from outside to buy basic essentials like food, medicine and fuel, the country is looking outwards for immediate help. 

While that is an imperative and the powers that be are doing what’s needed to get the global assistance needed to tide through the immediate needs, it’s also time to start pondering the steps needed to unleash economic value from within Sri Lanka. And how to plug in to global resources that can fuel this change. 

Let’s take an example of a country that’s trying to do just that in Africa – Senegal – a country of 16 million people, with a per capita GDP of $ 3,300. And in 2021, it had its first unicorn – a company with a $ 1 billion funded start-up – Wave, a home grown Senegalese start-up which is a mobile money provider raised the biggest Series A round in Africa. 

Senegal is by no means a great example of big start-up successes but it’s an example of how a country that puts priority for the start-up industries can reap significant rewards in a short to medium term. The government of Senegal passed the Start-up’ act in 2019, as a way to kick start its ‘Digital Senegal 2025’ mission. This clearly envisioned the value unleashed economically by incentivising innovation and entrepreneurship through start-ups in Senegal. Many legislative measures were implemented to promote, fund and facilitate the start-up space. The results have just begun to be reaped. But also Senegal is integrated to West Africa and start-ups see a larger purpose beyond the limitations of their geography – to a larger Africa which offers a big potential market for their innovations and ideas. 

So what can we do to unleash the potential of start-ups in Sri Lanka? 

Strengthen legislative incentives and make digital Sri Lanka a strategic priority

The ecosystem must combine to give confidence to young people with an innovative idea in their minds that anything is possible and that the system will guide them to success 

Integrate with South Asia to create a bigger broader vision for aspirants that from Sri Lanka itself you can target and envision bigger markets for growth 

Provide key elements such as mentorship, education facilities, cohort and acceleration structures and services that have global expertise and context so the idea generator can aspire for more 

Provide good innovators with access to global funding and markets 

While some of these could be the result of specific government-led efforts, some others need active intervention of the private sector to combine with members of existing start-up ecosystem to kick start the entrepreneurial revolution. 

Let’s wake up the sleeping unicorns in Sri Lanka. Let’s get together to make it happen.

(The writer is Chairman of Kaleidoscope Ltd. and founder of brand ‘Lanka Accelarator’. He can be reached on [email protected].)