Bank of Ceylon and Sri Lanka’s entrepreneurial future: Partnership for growth and innovation

Ministry of Industry and Entrepreneurship Development Secretary 

J.M. Thilaka Jayasundara 

• An exclusive interview with Ministry of Industry and Entrepreneurship Development Secretary J.M. Thilaka Jayasundara

In a rapidly evolving global economy, Sri Lanka is striving to enhance its industrial and entrepreneurial sectors. The Ministry of Industry and Entrepreneurship Development plays a pivotal role in shaping policies, fostering innovation, and providing crucial support to aspiring entrepreneurs. We had the privilege of speaking with J.M. Thilaka Jayasundara, the Secretary to the Ministry, to gain insights into Sri Lanka’s current entrepreneurial landscape, the challenges faced by businesses, and the initiatives being implemented to drive growth. Following are excerpts:

Q: How do you assess the current state of industry and entrepreneurship in Sri Lanka?

A: The industrial sector is a fundamental pillar of economic development. To achieve sustainable growth, Sri Lanka needs at least 10% of its workforce to be entrepreneurs. As a ministry, our objective is to foster this entrepreneurial culture and provide the necessary support for startups and small businesses to thrive.

One of the biggest challenges in entrepreneurship is access to financial resources. Many aspiring entrepreneurs possess the knowledge and skills to establish businesses, but lack the financial backing required to launch and sustain their ventures. In this regard, banks play a critical role in providing accessible financial assistance. Strengthening financial support systems will enable entrepreneurs to contribute significantly to the nation’s economy.

Q: Several Government institutions collaborate with your ministry. How do you view this network, particularly in connection with the Bank of Ceylon (BOC)?

A: We work closely with various institutions that directly contribute to entrepreneurial and industrial development. These include the Industrial Development Board (IDB), National Entrepreneurial Development Authority (NEDA), Small Enterprise Development (SED), Export Development Board (EDB), National Craft Council, and Sri Lanka Institute of Textile and Apparel (SLITA), among others.

The Bank of Ceylon (BOC) has been a key partner in our efforts to empower entrepreneurs. Their proactive role in supporting businesses, particularly through collaborations with institutions like SED, NEDA, and IDB, has been commendable. We deeply appreciate BOC’s unwavering commitment and look forward to strengthening this partnership to further enhance entrepreneurial development in Sri Lanka. 

Q: BOC Youth Loan program was highly successful in its first phase, achieving a 96% success rate. Now, the second phase is being launched. What are your thoughts on this initiative?

A: One of the major barriers for young entrepreneurs in Sri Lanka is collateral requirements for loans. Many banks demand substantial collateral, making it difficult for young business owners to secure financial assistance. However, BOC has taken a progressive approach by offering loans with minimal collateral requirements, which is a remarkable initiative.

Young entrepreneurs possess immense potential, creativity, and energy, but their efforts are often stifled due to financial constraints. The BOC Youth Loan program is a game-changer, providing these aspiring business owners with the capital they need to start, sustain, and expand their enterprises.

As a ministry, we have also launched the 1,000 Youth Entrepreneurial Development Program, which aligns well with BOC’s initiative. The five-billion-rupee loan scheme is an admirable step toward empowering young entrepreneurs, and we highly recommend and support this initiative.

To ensure long-term success, we also offer post-loan support to help young entrepreneurs navigate challenges and grow their businesses. I encourage BOC to prioritise funding industries associated with our ministry, as we are committed to providing ongoing support to these entrepreneurs.

Q: BOC has established the “BOC Export Circle” to support Sri Lankan exporters. What is your perspective on this initiative?

A: Sri Lanka’s Gross National Product (GNP) stands at approximately $ 84 billion, with the merchandise export sector contributing around $ 16 billion. However, to strengthen the economy, we have set a target of $ 28 billion in merchandise export revenue by 2030.

Achieving this ambitious goal is no easy task. In the short term, we aim to increase merchandise revenue to $ 19 billion this year. A key challenge is that Sri Lanka’s export portfolio remains limited, and diversification is essential to promote new export-oriented enterprises and innovative products.

The BOC Export Circle is a fantastic initiative, providing much-needed financial and logistical support to exporters. By expanding market opportunities and fostering innovation, this initiative can significantly contribute to our national export targets. We look forward to collaborating with BOC to empower exporters and drive Sri Lanka’s economic growth.

Q: In the recent economic downturns, many industries struggled, but BOC continued to support businesses. How do you view this commitment?

A: The past few years have been challenging for Sri Lanka’s economy, with numerous businesses facing bankruptcy. In such times, financial institutions play a crucial role in helping struggling businesses recover. While many banks were hesitant to support enterprises during the crisis, BOC stood by its clients, ensuring that businesses could sustain themselves and emerge from financial distress.

This compassionate and strategic approach is highly commendable. Unless a business is a wilful defaulter, it deserves a chance to recover. Many entrepreneurs are still grappling with the aftermath of the economic downturn, and I strongly urge BOC to continue its support so that businesses can regain stability and contribute to economic revival.

Q: As the Secretary to the Ministry, what advice would you gives to Sri Lanka’s youth regarding entrepreneurship?

A: Currently, only 3.2% of Sri Lanka’s workforce consists of entrepreneurs. To build a robust economy, we need to increase this figure to at least 10%. Instead of solely seeking employment, the youth should be encouraged to create their own businesses. Entrepreneurship, when combined with proper education and training, leads to sustainable success. Young individuals should explore new opportunities beyond traditional business models and embrace innovative concepts such as: Eco-business, green business and green technology, green financing, e-commerce and online marketing, digital transformation and fintech solutions.

A strong support system is essential for nurturing young entrepreneurs, and financial institutions play a crucial role in this process. If banks actively support youth-led startups, we can cultivate a generation of innovative, creative, and forward-thinking entrepreneurs. I extend a heartfelt invitation to the Bank of Ceylon to continue its invaluable support in empowering young entrepreneurs and building a progressive, economically resilient Sri Lanka.

Sri Lanka’s economic future depends on its ability to nurture and empower entrepreneurs. With strong Government policies, strategic financial support, and innovative thinking, the country can transform its industrial and business landscape. J.M. Thilaka Jayasundara and the Ministry of Industry and Entrepreneurship Development are committed to fostering a thriving entrepreneurial culture, and with collaborative efforts from institutions like the Bank of Ceylon, Sri Lanka can unlock new avenues of economic growth and prosperity.