Prime Minister Dr. Harini Amarasuriya emphasized the urgent need to increase women’s participation in the economic sector, both globally and in Sri Lanka.
She made these remarks yesterday (18) at the launch of the Women’s Entrepreneurial Financial Fund, organized by the Ministry of Finance and Economic Development, held at the Kingsbury Hotel in Colombo, according to the Prime Minister’s Media Division.
Further addressing the event, the Prime Minister stated:
“There are stark gender disparities in labor force participation, with only 47% of women globally and 32% in Sri Lanka being economically active, compared to 72% and 71% of men, respectively.
It is crucial to address systemic barriers such as limited access to finance, markets, skilled labor, and technology, which hinder the entrepreneurial endeavors of women.
Women in Sri Lanka also face numerous challenges due to unsafe public transport and workplace environments, as well as socio-cultural norms that place significant domestic responsibilities on them,” she said.
According to the International Finance Corporation’s (IFC) MSME Finance Gap Report, there is an estimated global finance gap of USD 5.2 trillion for formal MSMEs and USD 2.9 trillion for informal MSMEs.
Sri Lanka’s finance gap for MSMEs stands at approximately USD 17 billion, accounting for 21% of the country’s Gross Domestic Product (GDP). A significant contributing factor to this gap is the disproportionate impact on women-led MSMEs.
Closing the financing gap for women entrepreneurs could unlock an additional USD 5-6 trillion in global economic value, the statement said.
The Prime Minister also highlighted the Women Entrepreneurs’ Finance Goal (We Finance Goal), a global initiative aimed at enhancing access to finance for women entrepreneurs through leadership, action, and data-driven approaches.
She further emphasized that Sri Lanka is among the first 24 countries to pilot this initiative, with the Asian Development Bank (ADB) supporting its implementation and successfully formulating the National Definition for Women-led Businesses in August 2024.
Commending the Asian Development Bank (ADB) for its comprehensive support, the Prime Minister stated that the initiative has facilitated improved data collection and reporting, leading to better policy-making.
She reaffirmed the government’s commitment to establishing a national coalition to support Women-led Micro, Small, and Medium Enterprises (WMSMEs), strengthening women’s economic empowerment, it added.
The event was attended by Dr. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka; Mr. Mahinda Siriwardhana, Secretary to the Treasury; officials from the Ministry of Finance and Economic Development; and representatives from banks and financial institutions.
