Sri Lanka could see more expansionary measures from 2027 as the government looks to move beyond economic stabilisation towards stronger growth, with small and medium enterprises (SMEs) expected to play a pivotal role in the next phase of the recovery, Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe said yesterday.
According to Deputy Minister, the progress made on fiscal reforms and macroeconomic stability would increasingly allow the Government to focus on measures conducive to business and economic expansion.
“We would see more expansionary measures coming up in 2027 from the fiscal reforms that will enable growth that will be more conducive for business, because for the next five years we are planning to achieve significant annual growth in GDP, and especially in exports and GDP growth,” Abeysinghe said while speaking at the Scale Up 2.0 National SME Forum 2026 organised by the Ceylon Chamber of Commerce,
He pointed out that Sri Lanka had moved towards a more stable position over the past three years in terms of macroeconomic conditions and its ability to repay debt, while reaching several milestones in its growth trajectory.
He stressed that SMEs would be central to the Government’s growth strategy, not only for their contribution to economic activity, but also as a mechanism to address poverty and the unequal distribution of economic resources.
“We believe in the SME sector as a mode of redistribution of wealth. We have a significant poverty issue in the country. We have an unequal distribution of resources across the country,” Abeysinghe said.
He argued that expanding entrepreneurship and the SME sector would be critical to spreading economic opportunities more widely across the country.
“I would say the only and the most important solution is growing entrepreneurs and growing SME sectors,” he said.
The Deputy Minister also stressed the need for SMEs to move beyond operating in isolation and become better connected with wider local and global business networks.
Abeysinghe acknowledged the role played by the Ceylon Chamber in tracking the progress of SME reforms, identifying gaps and maintaining pressure for further policy changes, while also stepping in to support businesses in areas where government interventions remained inadequate.
The Scale Up 2.0 National SME Forum 2026, held under the theme ‘Connected, Competitive, Ready to Grow’, brought together policymakers, business leaders, entrepreneurs and industry representatives to discuss the next phase of SME development, including access to markets and finance, standards and certification, investment readiness and integration into local and global value chains.
