Business

95% of micro startups supported by govt and NGOs fall by the way side within 5 years: expert

Published

3 years ago

2023/01/12

Sahan Weerasooriya

Dr. Premasiri Gamage

By Sanath Nanayakkare

95% of microbusinesses supported through the Government and NGO mechanisms tend to become no longer active or successful within 5 years, according to an experienced mentor of entrepreneurship.

Dr. Premasiri Gamage, Management guru and personality trainer specialized in rural entrepreneurship development and micro finance revealed this during an interview with Independent Television network (ITN) yesterday.

“15% of these micro businesses are constantly moving in a roundabout without making any progress and seeking further support from the Government or NGOs, and therefore, the joint efforts by these two institutions have actually helped create a minimal 5% of successful micro businesses in any given 5-year time periods,” he said.

“Some of them are very good niche ideas that could be the start of multi-million rupee businesses, but they fail to produce their potential mainly because these entrepreneurs solely depend on themselves without outsourcing certain tasks or partnering with a strong network. It is not easy managing even a micro business holistically on one’s own in today’s competitive environment and one would need insights and direction from those who have the expertise. But here in Sri Lanka, many people believe that partnerships are untrustworthy because money can change everything. But as a sole proprietor, one alone is responsible for the success or failure of the business. But in a partnership, there will be complementary strengths, talents, personalities, and experiences of the prospective partners. Many Sri Lankan parents urge their adult children who are passionate about starting a business to do so on their own without the contribution of no-one. This has frightened our youth and they are naturally discouraged from entering a partnership and eventually they don’t enter the entrepreneurial world at all. We have to get rid of this misconception. How many businesspeople have prospered in the world on his or her own? Almost none. There are many people behind the big companies’ success other than their founders. Alibaba CEO, Jack Ma hired passionate entrepreneurs to build a solid foundation on which to base the company’s growth. Bill Gates trusted in the ability of those whom he hired to come up with answers to problems. Mark Zukerberg had partners that were important elements of his company and were leading a lot of key efforts for the company. So, it’s a Sri Lankan myth that a business has to be a sole proprietorship because there can be many disadvantages to it,” he said.

“Another Sri Lankan myth is that for one to enter the entrepreneurial world, one must have entrepreneurial DNA. That is not necessarily so. If one has the passion for business, entrepreneurship can be acquired. There are specialized entrepreneurship mentors in Sri Lanka who can give the knowledge to design a curriculum to learn and practice entrepreneurship. A lot of academics and professionals are ready to share that knowledge with interested young people at school level or with those who are looking to be financially independent without any age barrier. If the Minister of Education and the Secretary to the Ministry of Education are willing to partner with us, we will muster the support of the universities to initiate entrepreneurship education programmes islandwide. The key eligibility of being an entrepreneur is; not having a dependent-mindset and having the capacity to take responsibility for one’s own life without seeking giveaways from the Government,” he said.

Dr. Premasiri Gamage said that they have organized an entrepreneurship education programme for the youth in Bulathsinhala at Bulathsinhala Pradeshiya Sabah Auditorium from 8: 30 am-1: 30 pm on January 19.

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Business

Embedding human rights, equity and integrity into business leadership

Published

20 hours ago

2026/03/5

Sahan Weerasooriya

Rathika de Silva, Executive Director

At its 2026 Social Sustainability Programme Kick-Off, the UN Global Compact Network Sri Lanka convened business leaders to advance the translation of global ambition into practical corporate action on inclusion, integrity and human rights.

On 24 February 2026, the UN Global Compact Network Sri Lanka (Network Sri Lanka) convened business leaders at Barefoot Garden Café for its 2026 Social Sustainability Programme Kick-Off, delivered in collaboration with Good Life X.

The gathering did more than introduce a calendar of events. It positioned Sri Lanka’s corporate community within the broader direction of the UN Global Compact’s 2026–2030 global strategy — a strategy anchored in three imperatives: equipping companies to act, catalyzing collective action, and advancing the business case for responsible leadership.

At its core, the 2026 Social Sustainability agenda is designed to move companies from commitment to capability.

Within the Diversity & Inclusion Working Group, this means building practical pathways toward equal pay for equal work and strengthening male allyship as a governance issue rather than a cultural afterthought. It means examining sexual and reproductive health, disability inclusion, and mental health not as employee benefits, but as structural determinants of productivity and retention. It means sharpening strategic communications so inclusion is embedded in brand integrity. It also means applying science-based behavioural change approaches to shift organizational culture in measurable ways.

Across the Business & Human Rights Working Group, equipping companies takes the form of deepened engagement on decent work and living wage implementation, strengthening human rights due diligence processes, and addressing emerging risk areas such as AI and digital rights. It extends to reinforcing business integrity and anti-corruption frameworks, understanding the social dimensions of a just transition, and recognizing the link between child rights, nutrition, and workforce productivity.

Business

Union Bank to raise LKR 3 Bn via Basel III Compliant Debenture Issue

Published

20 hours ago

2026/03/5

Sahan Weerasooriya

Shanka Abeywardene

Union Bank of Colombo PLC announced its proposed Debenture Issue 2026, a strategic move aimed at raising up to LKR 3 billion. This issue is designed to bolster the Bank’s Tier II capital base and provide a robust financial foundation for its upcoming growth initiatives.

The offering consists of Basel III compliant, listed, rated, unsecured, subordinated, redeemable high-yield debentures with Non-Viability Conversion. The instrument has been assigned a rating of BB (lka) by Fitch Ratings (Lanka) Ltd, reflecting the bank’s creditworthiness and the structured nature of the subordinated debt.

Investors can choose from three distinct interest structures starting from a high-yield 13% fixed rate per annum (Type A). This option is paid annually, while Type B offers a 12.5% fixed rate paid semi-annually (12.89% AER). For those seeking market-linked returns, Type C provides a floating rate of the 182-days Treasury Bill rate plus a 400-basis point margin, also paid semi-annually.

The debentures are priced at LKR 100 per unit with a 5-year tenure (2026–2031). The initial issue size is set at 20,000,000 debentures with an option to raise 10,000,000 at the discretion of the Bank and is scheduled to open on 10 March 2026.

Shanka Abeywardene, Chief Financial Officer of Union Bank stated “This debenture issue marks a significant step in the Bank’s journey towards enhanced financial stability. By strengthening its capital adequacy, Union Bank is well-positioned to navigate evolving market conditions while fuelling its long-term strategic objectives for sustainable growth”

Business

Sanjay Kulatunga appointed to WindForce Board

Published

20 hours ago

2026/03/5

Sahan Weerasooriya

Sanjay Kulatunga

WindForce PLC announced the appointment of Sanjay Kulatunga as an Independent, Non-Executive Director to its Board with effect from 03rd March 2026, following the resignation of Dilshan Hettiaratchi. The appointment further strengthens the Company’s governance framework, strategic oversight, and long-term decision-making capabilities.

Kulatunga brings an established track record as a founder, entrepreneur, and senior executive across financial services and export-oriented industries. He is the Chief Executive Officer and Co-Founder of LYNEAR Wealth Management, a boutique investment firm established in 2013, which has since grown to become one of Sri Lanka’s largest private wealth management institutions, serving high-net-worth individuals as well as local and international institutional clients.

Prior to founding LYNEAR, Kulatunga played a pivotal role in the establishment of Amba Research, an investment research offshoring firm rooted in Sri Lanka and now operating as part of Acuity Analytics.

Over the years, he has contributed extensively to several key national institutions. His previous appointments include serving on the Financial Sector Stability Consultative Committee of the Central Bank of Sri Lanka, as well as the Board of Investment of Sri Lanka and the Securities and Exchange Commission of Sri Lanka.