CMA Sri Lanka Budget proposals for promotion and development of MSME sector

THE CMA Sri Lanka SME Development Committee comprises members from professional bodies, commercial banks, chambers of commerce and industry, and industry experts who have been meeting since April 2020 to find solutions and support the SME sector.

- By Professor Lakshman R. Watawala

In Sri Lanka, MSMEs comprise more than 75% of enterprises and account for 52% of GDP, 45% of employment, and a meagre 5% in exports

One of the main recommendations made was to revive the SME Credit Guarantee Institution which was appearing as an approved project in the ADB project proposals since 2019 which was approved by the Cabinet of Ministers and was launched in June this year.

The annual conduct of the UN MSME day conference 2021 with the latest one on 27 June 2025 with the participation of 11 commercial banks and two finance companies with their SME customers totalling 250 with a competition to judge the best SME projects nominated by the banks.

The Budget proposals made for the development of the MSME sector which would generate employment to around 100,000 unemployed persons are given below:

We are very happy to see the launch of the National Credit Guarantee Institution in June this year and wish to suggest that action be taken to grant loans to entrepreneurs, and start up projects with special reference to women.