Economic
Local MSMEs on the brink of collapse, banks thrive
Micro, Small, and Medium Enterprises in Sri Lanka face collapse under pressure from climate impacts, pandemic aftershocks, and credit squeeze.
Micro, Small, and Medium Enterprises (MSMEs), which form the backbone of Sri Lanka’s economy and contribute over half of the country’s GDP, are on the brink of collapse. This threat arises from multiple factors including climate devastation, the lingering effects of the COVID‑19 pandemic, and a severe credit squeeze that denies many MSMEs access to affordable financing. The article highlights the growing disparity between struggling small businesses and a thriving banking sector.
- Status
- active
- Location
- Sri Lanka
- Date added
- 2026-03-25 21:14 UTC
- Last updated
- 2026-03-25 21:14 UTC
- Source
- https://www.sundaytimes.lk
- Connected threats
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- Not Available