CA Sri Lanka launches multi-pronged initiative to power SME sector

The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) together with the Colombo Stock Exchange (CSE) rolled out a multi-pronged initiative to power the small and medium-sized enterprise (SME) sector recently, launching the SME Creditworthiness Rating Framework, SME Connect Awards and the inaugural issue of ‘The Entrepreneur’ magazine.

At a press conference held at the institute’s head office in Colombo 7, CA Sri Lanka also unveiled the SME Connect logo, the visual identity for the institute’s broader SME initiatives. 

The press conference was presided by CA Sri Lanka President Tishan Subasinghe, CA SME Connect Committee Vice President and Chairperson Anoji de Silva, Alternate Chairperson Saman Srilal, Council Members, CEO Lakmali Priyangika and CSE CEO Rajeeva Bandaranaike.

The SME Creditworthiness Rating Framework was developed by CA Sri Lanka in response to a formal request from the Development Finance Department of the Finance Ministry, in December 2024, which called for a standardised, scalable credit assessment mechanism tailored to the Sri Lankan SMEs.

The framework comprises two components: the Creditworthiness Rating System, a structured model evaluating the SMEs on financial performance, governance and operational indicators, to enable standardised credit profiles for the lenders and investors and the Application Guidelines, which set out the eligibility criteria, documentation requirements and assessment process. Together, they are designed to provide the financial institutions with a consistent risk assessment tool while helping the SMEs understand and improve their financial standing. The framework’s scalable design allows both the micro-enterprises and high-growth start-ups to benefit.

Speaking at the launch, Subasinghe said the SMEs are the lifeblood of Sri Lanka’s economy but that their growth has been stifled by a lack of transparent, structured access to finance.

“Today’s initiatives are designed to reshape the future of Sri Lanka’s SME sector. They will enable the businesses to strengthen their financial credentials, unlock greater access to capital, inspire investor confidence and build the governance and financial discipline needed to graduate from privately held enterprises to publicly listed companies,” he said.

The SME Connect Awards will recognise the SMEs that demonstrate exceptional governance, financial discipline, resilience and sustainable growth, setting a benchmark for excellence while fostering a culture of accountability and professionalism across the sector.

de Silva said the CA SME Connect Committee was established to build a meaningful bridge between the institute and SME sector, addressing the longstanding challenges while creating new opportunities for growth. 

“This initiative addresses a longstanding gap in SME financing by establishing a standardised pathway to improved credit access and future participation in the capital markets. Beyond improving access to finance, it is designed to help the high-potential SMEs strengthen their financial credibility, scale sustainably and compete with confidence in regional and global markets,” she said.

CA Sri Lanka will also conduct a series of capacity-building workshops in the coming months, offering practical guidance on credit applications, financial management and investor readiness, while familiarising the SMEs with the framework and its application process.

The launch of The Entrepreneur magazine marks a further step forward, providing a platform to move beyond the frameworks and awards into storytelling and engagement by sharing real entrepreneurial journeys and connecting more meaningfully with the SME community.