Developing and supporting entrepreneurs in Sri Lanka

Top (from left): Dhammika Perera, late Mikki Wickremesinghe, late Abbas Akbarally

Bottom (from left): David Pieris, Mahesh Amalean, late R. Rajamahendran, Ranjit Page of Cargills 

Last week, my article in the Daily FT titled “Entrepreneurs who shaped Sri Lanka’s business landscape” received wide interest and comments. Two strong responses questioned why I had left out entrepreneurs such as David Pieris, Chairman of Sri Lanka’s largest automotive company; the late Abbas Akbarally, Founder Chairman of Akbar Brothers, one of the world’s largest tea companies based in Sri Lanka; the late Mikki Wickremesinghe, pioneering industrialist and social entrepreneur, the legend behind Munchee; Mahesh Amalean, Sri Lankan industrialist and Chairman of MAS Holdings; businessman Dhammika Perera, Founder and Chairman of DP Education; Ishara Nanayakkara, Sri Lankan entrepreneur and investor; and the late Rajamahendran, the visionary who redefined mobile telephony, media reporting, and energy delivery and Ranjit Page of Cargills, —each of whom has made significant contributions to Sri Lanka’s economy. I’d like to address both of these comments.

Firstly, my article last week focused on entrepreneurs that I have had the privilege of working with closely at the Board level or professionally. Secondly, regarding the question of what Sri Lanka can do to create a pipeline of young entrepreneurs, I believe Sri Lanka certainly needs a program akin to Start Up India (https://www.startupindia.gov.in/) to foster and support a new generation of entrepreneurs. Despite several governments attempting to create the necessary infrastructure, we have yet to successfully implement such a program.

The role of entrepreneurs in GDP growth

Sri Lanka post-crisis desperately needs entrepreneurs to create wealth and drive GDP growth. Entrepreneurs are catalysts for innovation, economic development, and job creation. They boost productivity, elevate living standards, and foster wealth generation.

Take India, for example: entrepreneurs there have been key drivers of economic transformation, establishing businesses that contribute significantly to GDP while reducing dependency on traditional industries. Similarly, in China, despite a state-dominated business environment, entrepreneurs have played a vital role in driving growth, job creation, and poverty reduction. Entrepreneurs contribute to GDP not only by producing goods and services but also by expanding underdeveloped sectors such as technology, tourism, and renewable energy. 

Additionally, they attract both domestic and foreign investments, which further fuel economic expansion and wealth creation. New businesses also generate employment opportunities across various skill levels, reducing unemployment. Importantly, entrepreneurs create demand for a skilled workforce, prompting governments to invest in upskilling their populations. India’s Skill India Initiative, for instance, has helped transform the country into one of the world’s leading suppliers of a young, employable workforce—fundamentally altering the nation’s economic landscape.

Start-up Sri Lanka

The Start-up Sri Lanka program was initially conceived to complement the Enterprise Sri Lanka initiative, aiming to cultivate an entrepreneurial culture. It sought to promote job creation, wealth generation, and the development of new industries. Key elements included:

• Regulatory reforms.

• Tax exemptions.

• Intellectual property protection.

• Incubators for public-private collaboration.

For such initiatives to succeed, Sri Lanka must simplify regulatory processes, offer financial incentives, and build support structures that nurture innovation. The success of similar programs worldwide illustrates their potential to drive economic growth.

However, to truly unlock entrepreneurial potential, Sri Lanka must adopt a holistic approach. This involves:

• Effective policy-making.

• Access to capital and supportive banking sector.

• An ecosystem that supports creative and innovative solutions.

By fostering a vibrant entrepreneurial ecosystem, Sri Lanka can drive sustainable growth, unlock its economic potential, and create opportunities for future generations.

Renewable energy and climate adaptation

Another critical area where the Government must support entrepreneurs is in renewable energy, sustainable energy infrastructure, and climate adaptation projects. Globally, there are numerous examples of successful partnerships between governments and the private sector, working toward a shared vision of a better, more sustainable future for their people. Sri Lanka has the talent and resources to replicate these successes. 

References:

https://www.ft.lk/opinion/Entrepreneurs-who-shaped-Sri-Lanka-s-biz-landscape/14-769795

https://youtu.be/pn716s8Z16E?si=koVhjlQ7OhHfRC2z

https://www.hbs.edu/creating-emerging-markets/video-database/Pages/details.aspx?v=Akbarally+-+Government+and+Business