In a unique partnership between the Asia Pacific Institute of Information Technology (APIIT), Rotary Club of Kandy, and Information and Communication Technology Agency (ICTA), a unique meeting was held recently at Oak Regency Hotel, Kandy where 53 high-potential Small and Medium-sized Enterprises (SMEs) were selected for a ‘next-level SME development’ programme.
If we are to make the country achieve a 6%+ GDP growth from the current 4.8%, we must move to an SME-focussed budget, said Rotary Sri Lanka and the Maldives SME Chair Dr. Rohantha Athukorala.
The infusion of new technology to SMEs is the only way in which we can make Sri Lankan SMEs competitive in the global marketplace, according to Dr. Athukorala, who added that entities like APIIT must be integral to the new landscape of the country’s development agenda.
He further opined that Budget 2026 must address the needs of SMEs, starting from the banking sector, to support the SMEs in concessionary funding for small loans and technology infusement if the country was to hit a 6% GDP growth. GDP growth in Sri Lanka in 2025 has been flagging at 4.8% as against a growth of 5.2% GDP recorded in 2024.
Rotary Club of Kandy President Ravindra Tammita said that SMEs contributed to 52% of the economy and that it was critical that they were supported with strong mentoring, adding that Rotary had taken on this task for the year 2025/’26. If 200 SMEs that have the next level of technology and a sustainable demand chain can be developed, the club will have fulfilled its task for Sri Lanka. In order for this to be achieved, the link with the education sector is key, especially with the development of Artificial Intelligence (AI).
The Government’s focus has been strong, but the consensus from different quarters of the country is that Budget 2026 must address the requirements of SMEs by way of a dedicated ministry for these enterprises.
The National Budget that was presented earlier this month had many incentives for the SME sector, but the tax threshold dropping from Rs. 60 million to Rs. 36 million was not well received by SMEs due to administrative challenges within the SME sector.