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Council for Startups Chairman Prajeeth Balasubramaniam (right) at the media briefing yesterday. Ceylon Chamber's Rajendra Theagarajah, nCinga CEO Imal Kalutotage and Ceylon Chamber of Commerce Yasura Samarakoon are also present - Pic by Lasantha Kumara
A private sector-led council has been formed to champion multi-faceted startups and SMEs in the country as a means enhance their contribution to socio-economic growth.
Set up under the aegis of the Ceylon Chamber of Commerce, the Council for Startups aims to address the key needs and challenges of SMEs and startups through allocation of a range of easily accessible opportunities, including access to over 40 international markets for various partnerships.
“The council primarily aims to foster a thriving ecosystem of entrepreneurship, which facilitates economic growth and empowerment of startups and SMEs in Sri Lanka,” Council for Startups Chairman and representative of investors Prajeeth Balasubramaniam told journalists yesterday.
The eight-member committee of the Council, set up in September 2020, comprises investors, entrepreneurs, financiers, incubators/accelerators and other ecosystem players.
Other members are Heminda Jayaweera (CEO, SLINTEC), Imal Kalutotage (CEO, nCinga), Achala Samaradivakara (Co-Founder and Managing Director, Good Market), Shalin Balasuriya (Co-Founder, Spa Ceylon), Indika Kudagamage (Assistant Vice President, National Development Bank PLC), Chandula Abeywickrama (Founder and Chairman, Lanka Impact-Investment Network) and Yasura Samarakoon (Manager – Business and Trade Promotion, The Ceylon Chamber of Commerce).
Established with the sole purpose of solving the problems faced by startups and SMEs, the council will be equipped to help entrepreneurs with ‘go-to-market’ and work towards making it conducive for startups and other startup ecosystem players to thrive.
Balasubramaniam, who is also the founder of Lankan Angel Network and BOV Capital General Partner, said Sri Lanka’s strategic location with great connectivity, export oriented growth strategy, digital/efficiency gains, brain gain and being an attractive place to work in the region were among the key reasons why Sri Lanka can be positioned as an ideal hub for startups.
“Sri Lanka’s start up eco system has evolved considerably in the past 10 years with funding, enablers, industry, investors and events. We have seen lot of activity at the beginning phase of a startup starting from ‘idea to seed capital to early stage’. However there is unmet need for support in start ups’ stages from ‘later, growth and mature,’” Balasubramaniam pointed out.
“The council will be bringing the local and international eco system partners together. This is very important,” he added.
Balasubramaniam also emphasised there was strong Government support helping the ecosystem to take off. He listed public private sector initiatives such as $ 53 million worth five Tech Parks project in key regional cities, roll out of 4G countrywide, $ 42 million IT infrastructure development and tax incentives to list on the Colombo Stock Exchange.
It was pointed out that given Sri Lanka’s software engineering talent and innovation by companies ICT exports have risen to $ 1.2 billion in 2020 (estimate) from $ 847 million in 2015. In tandem, workforce in ICT industry has increased from 50,000 in 2010 to 146,000 by 2019.
He also spoke on the rapid progress of digitisation with more people are getting connected to the internet, large social media usage indicates digital inclusivity, and strong mobile penetration of 147% of the population.
Additionally, Balasubramaniam identified logistics, education, healthcare, retail/ecommerce and financial services as sectors which have massive “tailwind” opportunities post-COVID.
As a council of the Ceylon Chamber of Commerce/National Agenda Council, It will also be the largest private sector body in the country to collectively take up startup issues with the Government and help nurture and grow small companies seeking to solve a problem with innovative ideas and solutions.
Representing the CCC’s National Agenda Council former veteran banker Rajendra Theagarajah said the new initiative could play a key role in helping the SMEs who lack capacity and the competence to scale up.
“A total of 52% contribution to the GDP comes from the SMEs and startups. They also contribute 45% to employment. Therefore it is in the national interest to empower them. I would like to invite any SME or startup and other companies that wish to help them grow to be a member of this council,” added Balasubramaniam.
Through the creation of an entrepreneurship support system that constructively draws upon under-utilised natural resources, and capital and human resources, the Council for Startups foresees significantly accelerated development for startups and SMEs while aiding facilitation of overall economic growth.
As a representative of startups, the council provides imperative engagement with government ministries. This helps advocate for policy frameworks in favour of startups that will minimize legal and regulatory barriers. To battle any lack of industry knowledge and provide a boost in terms of business acumen, the council will provide partnerships and access to advisory service providers including consultancy firms, State agencies, legal, and secretarial firms who can provide cost effective and reliable information services to startups.
Startups can gain access to a wider market that enables opportunities overseas through support of diplomatic missions and the international network of chambers. Alongside access to market and business opportunities, the council will also provide professional BDS services such as business registration, legal, finance and other related support services.
Offering a highly influential and knowledgeable advantage, the CCC provides the cumulative support of 600 members to promote business opportunities for startups. These alliances (20 global chambers, 38 trade/product and service associations and 21 bilateral business councils) position the chamber in an ideal position to promote business opportunities.
The council recognises the benefits of sustaining ripe economic conditions and marketing opportunities for startups and further aims to use its resources and partnerships with high commissions, foreign chambers of commerce for startups, and consulting firms in order to create a secure infrastructure that drives optimal business performance.
