Business sentiment among Sri Lanka’s small and medium-sized enterprises (SMEs) remained pessimistic with an overall score of 36.3 out of 100, ‘SME pulse’ survey conducted by Sri Lanka@100.
SME pulse computes an aggregate monthly SME market sentiment score based on crowd psychology and sentiment on business environment influencing performance based on five key themes.
In June, the SMEs were most unhappy with Government Policies and Ease of Access to Finance with a pessimistic outlook. They were also concerned with supply chain continuity.
Despite the prevailing low-interest rate regime and the mandatory credit growth targets set by the Central Bank for the SME sector, the country’s SMEs continue to struggle to access finance for their investment plans and working capital requirements.
While the government’s pro-growth policies on taxation and policy rates are favourable for SMEs, the volatile protectionist trade regime combined with the current crisis in external account caused uncertainty for SMEs.
The survey showed SMEs remaining neutral on Consumer Behavior and Access to Technology.
Sri Lanka@100 is a private sector-led initiative focused on the growth of mid-market enterprises – funded by the U.nited states government’s international development agency (USAID), and administered by Stax Inc.