Business Entrepreneurship

Sri Lankan Businesses Demand Action: From Lack of Support to Corruption Concerns

Sri Lanka’s business community is calling on the government to address critical issues hindering entrepreneurship and economic growth. The Sri Lanka United Business Alliance (SLUBA), representing micro, small, and medium enterprises (MSMEs), urged officials to develop a comprehensive plan to support businesses during these challenging times.

SLUBA Chairperson Tania Abeysundara criticized the lack of focus on entrepreneurs. “The government seems solely reliant on the IMF, neglecting entrepreneurs who are the backbone of the economy. The President needs to prioritize fostering entrepreneurship, not stifling it with burdensome policies,” she stated.

Corruption and a reluctance to embrace digitalization were flagged by the Sri Lanka Shippers’ Council (SLSC). SLSC Chairman Sean Van Dort pointed out the inefficiencies caused by a return to manual processes at Customs, Ports, and Airports after the initial success of digital solutions implemented during the pandemic.

“Corruption is rampant,” Van Dort alleged. “From bribes demanded by the BOI verification office to undervaluation scams at Customs and Ports, officials prioritize personal gain over national progress.” He emphasized the need for a paperless environment through complete digitalization to streamline trade and combat corruption.

The Footwear and Leather Industry Association President, Buddhika Wimalasiri, highlighted the lack of support for local industries struggling with high electricity costs. He criticized the overreliance on foreign labor in the leather industry, stating, “We can capitalize on our resources. Cowhide is a valuable export, yet we lack the domestic capacity to process it due to a lack of support.” Wimalasiri further questioned the Central Bank’s regulatory role, pointing out the banking sector’s focus on profits despite struggling industries in need of financial backing.

The plight of businesses and individuals blacklisted by the Credit Information Bureau (CRIB) was also raised by Janaki Amarasinghe, former Secretary of the Small and Medium Enterprises Federation. “Those blacklisted by CRIB face immense financial hardship, yet there’s no support system in place,” she lamented.

Sri Lanka’s business community is urging the government to prioritize entrepreneurship, combat corruption through digitalization, and address the needs of struggling industries to ensure sustainable economic growth.

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