Treasury Secretary calls for data-driven policies to bridge financial gap for women entrepreneurs

Treasury Secretary Mahinda Siriwardana 

• At National Adoption of Women Entrepreneurs Finance Code, Treasury Secretary  Mahinda Siriwardana says evidence-based policies are a must to tackle financial inequality in women-led businesses
• Labels lack of and gender-disaggregated data as key limitation to pure financial inclusion
• Highlights importance of accurate and specific data in identifying risks, designing financial products and monitoring trends
• Opines WE Finance Code mandates financial institutions to collect, report gender-based financial data to Central Bank
• Insists boosting female workforce participation can improve productivity and support long-term economic growth
• States WE Finance Code supports financial stability, funds diverse businesses and promotes women-led innovation
• Asserts true progress requires countrywide data-driven policy approach, not just financial sector reforms

By Janani Kandaramage

Treasury Secretary Mahinda Siriwardana on Tuesday emphasised the urgent need to shift to an evidence-based, data-driven policy mechanism, as a means of addressing financial inequality in women-led businesses.

Speaking at the National Adoption of Women Entrepreneurs Finance Code (WE Finance Code) organised by the Asian Development Bank (ADB) in partnership with the Department of Development Finance and Ministry of Finance, Planning and Economic Development, he labelled the lack of reliable, gender-disaggregated data as the primary hurdle to effective financial inclusion.

Siriwardana pointed out that without specific data, policymakers and financial institutions will struggle to identify major barriers, and design targeted financial products that meet the unique needs of women entrepreneurs. 

He also noted the critical role of data in monitoring progress and adjusting strategies based on real-time insights, adding: “This data-driven approach will allow us to fine-tune our policies, introduce necessary reforms, and ultimately create a more inclusive financial system.”

The Treasury Secretary praised the WE Finance Code for advocating such practices. “The WE Finance Code mandates that all banks and financial institutions systematically collect and report gender-disaggregated data to the Central Bank. The CBSL will serve as the national aggregator for financial data, ensuring that our financial policies are based on real, evidence-driven insights rather than assumptions,” he added.

Siriwardana called the WE Finance Code as a game changer for women entrepreneurs, highlighting its potential in creating a structured and transparent financial ecosystem that facilitates greater access to finance for women-led businesses. 

He stressed, however, that the core of this initiative lies beyond financing—aiming for a supportive regulatory environment by observing trends, tailored financial products, and a systematic approach to tracking progress. 

“This is why the Code is centred around the systematic collection and use of gender-disaggregated data, a crucial step toward data driven decision-making in financial policy,” he opined.

In addition, he spoke of how economic growth cannot rely on unsustainable fiscal and monetary stimulus – it must be driven by productivity enhancements. Labour productivity is a crucial factor of production, and Sri Lanka’s labour market has suffered from persistently low participation rates, particularly among women. As of mid-2024, the overall labour force participation rate in Sri Lanka stood at 47.8%, with female participation at only 30%. 

“By boosting female labour force participation, Sri Lanka could significantly enhance productivity growth, which is essential for achieving sustained economic growth. This growth is vital for ensuring the country’s economic, fiscal, and debt sustainability in the medium to long term. The key objective of the launch is ultimately to guarantee economic growth that is inclusive,” he explained.

The WE Finance, he described, aims to enhance financial stability by funding diverse businesses while promoting innovation through more women-led enterprises. He also emphasised the Code’s commitment to raising labour productivity by integrating women more actively into the business sector.

He opined that such aspirations cannot be achieved solely via the practices of the Finance Code but rather through a data-driven policy approach across sectors in the country.