There is an urgent need to enhance women’s participation in the economic sector, both globally and locally, said Prime Minister Dr. Harini Amarasuriya.
She made this statement while attending the launch of the Women Entrepreneurs Finance Code (WE Finance Code), organized jointly by the Ministry of Finance, Planning and Economic Development, the Asian Development Bank (ADB), and the International Finance Corporation (IFC) at the Kingsbury Hotel in Colombo on March 18.
Speaking at the event, Prime Minister Dr. Harini Amarasuriya highlighted that global and domestic labor force participation rates reveal a significant gender gap. While the male labor force participation rate stands at 72% globally and 71% in Sri Lanka, the female labor force participation rate is much lower at 47% globally and 32% domestically. She emphasized the importance of removing structural barriers that limit women’s access to finance, markets, training, and technology, all of which are essential for entrepreneurship.
She also pointed out that Sri Lankan women face additional challenges due to insecurity in public transport and workplaces, as well as domestic responsibilities imposed by socio-cultural norms.
The International Finance Corporation (IFC) has identified a global financing gap of US$5.2 trillion for formal micro, small, and medium enterprises (MSMEs) and US$2.9 trillion for informal MSMEs. In Sri Lanka, this financing gap amounts to approximately US$17 billion, or 21% of the country’s GDP, disproportionately affecting women-led MSMEs.
Dr. Amarasuriya noted that closing the financing gap for women entrepreneurs could contribute an additional US$5-6 trillion to the global economy. She also highlighted Women Entrepreneurs Finance Goal, a global initiative aimed at promoting women’s economic participation through leadership, action, and data-driven policies.
Sri Lanka is among the first 24 countries to implement this initiative, with support from the Asian Development Bank (ADB). The Prime Minister stated that in August 2024, Sri Lanka successfully developed a national definition for women-led enterprises, which will improve data collection and policymaking.
She expressed her appreciation for the ADB’s financial and policy support during the COVID-19 pandemic and economic crisis and reaffirmed the government’s commitment to establishing a national alliance to support women’s economic empowerment and the development of micro, small, and medium enterprises (MSMEs).
The event was attended by Central Bank Governor Dr. Nandalal Weerasinghe, Treasury Secretary Mahinda Siriwardena, officials from the Ministry of Finance, Planning, and Economic Development, and bank representatives.
