Saturday Sep 06, 2025
Saturday Sep 06, 2025
Wednesday, 30 July 2025 14:29 - - {{hitsCtrl.values.hits}}
Mr. Takafumi Kadano
MSMEs play a vital role in Sri Lanka’s economic development, contributing approximately 52% to the country’s GDP and providing nearly half of national employment. Spanning every district, these enterprises offer livelihoods, income, and economic stability to families, especially empowering youth and rural communities. As a key pillar of inclusive growth and poverty reduction, MSMEs also offer promising opportunities for women entrepreneurs and are central to regional development.
Beyond their economic contribution, MSMEs are drivers of innovation, entrepreneurship, and technological advancement. They generate new ideas, develop new products, and introduce new technologies, all of which contribute to national growth and competitiveness.
However, MSMEs face persistent challenges such as skill gaps in management, marketing, finance, and technology. Many lack the knowledge needed to access global markets and meet international compliance standards. Their operations often struggle to benefit from economies of scale and face high input and utility costs, limiting profitability and reinvestment.
The Asian Development Bank (ADB) has stepped in as a key partner in MSME development in Sri Lanka. It supports capacity building through universities, strengthens science and technology, and enhances academia-industry linkages to promote research with commercial potential. Furthermore, ADB provides financial support to women-led enterprises and rural businesses, while also focusing on improving financial literacy and management skills.
As Sri Lanka moves forward with its export development strategy, MSMEs must be equipped with the tools and knowledge to integrate into global value chains. ADB’s continued support is essential for building a resilient and inclusive MSME ecosystem.
