Bank of Ceylon Pioneers Youth Entrepreneurship and SME Sustainability in Sri Lanka’s Digital Economy with NEDA

By Vasana Abeynayake

The National Enterprise Development Authority (NEDA) has long championed the cause of entrepreneurship in Sri Lanka, with a special focus on nurturing the Micro, Small, and Medium Enterprise (MSME) sector. At the heart of this mission lies an invaluable partnership with the Bank of Ceylon (BOC), a financial institution often referred to as “Bankers to the nation.» BOC’s unwavering commitment to fostering youth entrepreneurship and empowering aspiring business leaders has significantly enhanced NEDA’s ability to drive sustainable growth and innovation across the nation. 

Mr. Lakshman Abeysekara, the Chairman/Director General of NEDA, shares insights into the pivotal role of BOC and the strategic initiatives undertaken to uplift Sri Lanka’s entrepreneurial ecosystem.

Q: Bank of Ceylon’s initiative underlines the importance of financial support in fostering entrepreneurship. In what ways has collaboration with financial institutions like BOC enhanced NEDA’s capacity to provide tailored support for SMEs and aspiring entrepreneurs, ensuring long-term sustainability and growth of the economy?

“The Bank of Ceylon has been a guiding light for NEDA, consistently backing our efforts to uplift SMEs and youth entrepreneurs. Their financial support has allowed us to implement targeted programs that address key challenges, including access to finance, capacity development, and market facilitation. With BOC’s backing, we have been able to channel resources efficiently, enabling us to implement initiatives such as capacity-building training, financial literacy programs, and a robust market linkage framework.

BOC’s commitment goes beyond financial assistance; they are true partners in fostering sustainable growth by encouraging aspiring entrepreneurs to dream big and achieve their goals. Together, we have made significant strides toward making Sri Lanka a truly entrepreneurial nation.

Q: With programs like “Unveil the Dream” and BOC’s youth loan initiative, how is NEDA collaborating with stakeholders to provide holistic support to youth entrepreneurs?

“Programs like “Unveil the Dream” exemplify the power of partnerships between NEDA and institutions like BOC. We recognize the importance of providing not just financial resources but also mentorship, technical support, and market access. Currently, we are developing a National SME Database, in collaboration with universities and other research bodies, to ensure that our programs are backed by comprehensive data. This initiative will allow us to connect entrepreneurs with resources, funding, and mentorship opportunities tailored to their specific needs.

BOC has been instrumental in supporting these efforts, particularly in addressing the challenges faced by youth entrepreneurs. Their youth loan program provides a crucial lifeline for young dreamers, ensuring they have the financial foundation to transform their ideas into sustainable businesses.

Q: Access to finance and market knowledge are critical for young entrepreneurs to scale their businesses. What strategies has NEDA adopted to enhance financial literacy, facilitate funding access, and guide start-ups toward sustainable growth, particularly in export-oriented ventures?

“At NEDA, we have adopted a multi-faceted approach to address these challenges. First, we conduct island wide financial literacy programs in collaboration with professional accounting bodies to empower entrepreneurs with essential financial management skills.

To further enhance access to finance, we have proposed the establishment of a Venture Capital/Equity Fund, with support from the Asian Development Bank (ADB). This initiative aims to provide much-needed equity financing for SMEs, particularly those with export potential.

Additionally, we have set up a Credit Guarantee Institution, which shares credit risk with banks, making it easier for entrepreneurs to secure loans. Parallel to this, our SME Connect digital platform provides a one-stop solution for learning, mentoring, and networking, empowering entrepreneurs with IT literacy and market insights.

Q: What are the key challenges young entrepreneurs face in launching and sustaining their businesses, and how does NEDA address these challenges through policy interventions and practical solutions?

“Young entrepreneurs in Sri Lanka face numerous challenges, starting with a lack of awareness about where to begin. Government institutions often have overlapping responsibilities, making the process confusing. At NEDA, we are restructuring and streamlining our operations to act as the apex body guiding entrepreneurs on their journey.

Another major challenge is market access. While finding markets can be daunting, we are working with foreign missions to create export opportunities for SMEs. Through targeted productivity and quality improvement initiatives, facilitated by the National Productivity Secretariat, we aim to enhance the global competitiveness of Sri Lankan businesses.

Outdated legislation, such as the Business Registration Ordinance of 1918, poses yet another obstacle. NEDA is advocating for reforms to simplify regulatory processes, ensuring flatter pathways for business registration and growth.

With unwavering support from BOC, we are addressing these challenges head-on, creating an ecosystem where youth entrepreneurs can thrive and contribute significantly to Sri Lanka’s economic growth.

Q: Could you elaborate on the role of BOC in supporting NEDA’s vision for a robust entrepreneurial ecosystem?

“BOC has been a steadfast partner in our journey to build a resilient entrepreneurial ecosystem. Their commitment to empowering SMEs and youth entrepreneurs aligns perfectly with NEDA’s vision. BOC not only provides financial assistance but also inspires confidence among aspiring entrepreneurs by offering tailored solutions that address their unique needs.

Through collaborative efforts, we are working to transform Sri Lanka into an entrepreneurial nation. From financial literacy programs to digital platforms like SME Connect introduced by NEDA, BOC has been instrumental in ensuring that resources, mentorship, and market access are within reach for all entrepreneurs.

With the combined efforts of NEDA, BOC, and other key stakeholders, Sri Lanka is on a path toward realizing its potential as a hub for innovation and entrepreneurship. By fostering a culture of collaboration and inclusivity, these institutions are not only transforming the entrepreneurial landscape but also creating a brighter future for the nation’s youth. Indeed, with BOC as a cornerstone of support, the dreams of Sri Lanka’s aspiring entrepreneurs are well within reach.