Crucial yet struggling MSMEs unite to form new lobby group

 Ceylon Federation of MSME President Shashika de Silva

Ceylon Federation of MSME Vice President Mahendra Perera

Ceylon Federation of MSME Vice President S.N. Raghavan

Opposition and SJB Leader Sajith Premadasa in conversation with MP Dr. Harsha de Silva at the launch of the apolitical Ceylon Federation of MSMEs yesterday at the BMICH. MPs Patali Champika Ranawaka and Dr. Nalaka Godahewa, entrepreneur and Mawbima Janatha Party Leader Dilith Jayaweera, and ex-Swiss banker and special guest Prof. Harald Steger are also present – Pix by Lasantha Kumara

• Ceylon Federation of MSMEs debuts to champion much needed support to the backbone of economy
• Launch coincides with 5th anniversary of Easter Sunday attacks, beginning of multiple crises including COVID-19 pandemic, political and economic chaos in 2022 for MSMEs
• Founders say group represents over 1 m formal MSMEs and will work towards making MSMEs great again
• Insist every Govt. must safeguard and nurture MSMEs which account for 52% of economy and key to stabilise country and boost growth
• Say MSMEs weren’t responsible for bankruptcy of the country
• Estimate Rs. 1.6 trillion worth of loans in default or 13% of total bank lending
• Leading political parties and politicians present at the launch pledge support to entrepreneurs

The economically critical yet troubled Micro, Small and Medium Enterprises (MSMEs) have united to launch a new lobby group to champion effective solutions to their plight thereby ensuring stability and prosperity in the country.

Named the “Ceylon Federation of MSMEs” the promoters said it represents 1.1 million formal MSMEs in the country and the grouping is apolitical.

The launch coincided with the fifth anniversary of the 2019 Easter Sunday attacks which was the beginning of multiple crises including the COVID-19 pandemic, and political and economic chaos in 2022.

Ceylon Federation of MSME President Sashika De Silva said the new grouping will be the platform to unite all entrepreneurs in the country and champion the growth of MSMEs.

“The Federation will be the platform designed with a clear vision, strategic approach, and innovative solutions to propel Sri Lanka’s entrepreneurs to new heights,” she said at the launch ceremony held at the BMICH attended by MSMEs from multiple districts, Members of Parliament, politicians, and state sector officials. 

She said central to the Federation’s vision is the imperative need for Sri Lanka to transition towards a manufacturing economy, a transformation that cannot be realised within the current framework of laws and regulations primarily favouring imports and trade. 

“Recognising the limitations in the Government’s capacity to single-handedly create the necessary environment for this transformation, we have identified key gaps, strategic imperatives, and actionable solutions. The Federation will stand as a beacon of value creation for entrepreneurs and a catalyst for essential resources and initiatives,” said de Silva adding that approach will be collaborative with multiple stakeholders.

“Entrepreneurship and entrepreneurs are an asset of a country and not a liability. Safeguarding and nurturing entrepreneurs is critical as MSMEs are the backbone of the economy. We also need to ensure the viability of the next generation of entrepreneurs,” the Federation’s President emphasised.

Vice President Mahendra Perera revealed that multiple crises in the country have led to Rs. 1.6 trillion worth of loans in default accounting for 13% of total bank lending.

“The Federation will champion the need to restructure existing debt and obtain working capital,” he added.

Vice President S.N. Raghavan said it was the MSMEs which took the brunt of the multiple crises and given their importance of accounting for 52% of the economy, it was critical to support the rebuilding of MSMEs. He also said it wasn’t the MSMEs which caused the bankruptcy of the country. 

“MSMEs are in dire need of money, manpower and material. The newly formed confederation and entrepreneurs will be the change Sri Lanka needs and make MSMEs great again,” Raghavan added. 

Special guest Prof. Harald Steger, an ex-banker from Switzerland, said being an entrepreneur is very challenging and hence needs support with an enabling environment. He stressed the need for a development bank dedicated entirely to MSMEs as they are key to socio-economic stability and prosperity. 

He also said given the strategic geographical location and proximity to India and natural resources, Sri Lanka has great potential to become a prosperous country. Prof. Steger was associated with the launch of the Federation’s website www.cfmsme.com at the ceremony.

Several political personalities also spoke at the launch and pledged policies to support entrepreneurship and MSMEs. Among them were the main Opposition and SJB Leader Sajith Premadasa, MP Patali Champika Ranawaka, National People’s Power Economic Advisor Prof. Anil Jayantha Fernando, entrepreneur and Mawbima Janatha Party Leader Dilith Jayaweera, in addition to Industrial Development Bank Chairman Dr. Saranga Alhapperuma, financial services expert Dr. Anil P. Baddewithana, entrepreneurship mentor Dr. Premasiri Gamage, and Ceylon Federation of MSMEs Secretary Nandalal Lekamge.