A deepening divide has emerged between Sri Lanka’s entrepreneurial sector and the National People’s Power (NPP) Government, as business leaders accuse authorities of failing to honour promises made to protect local industries and support economic recovery. Entrepreneurs now warn that flawed policies and foreign-influenced economic decisions are placing domestic businesses in jeopardy at a time when the country can least afford further instability.
The latest criticism came from the Sri Lanka United Business Alliance (SLUBA), which claims the Government has neglected the concerns of local entrepreneurs despite repeated assurances during the election campaign. Addressing the media in Colombo, SLUBA President Tania Abeysundara described the situation facing businesses as increasingly dangerous and unsustainable.
She stated that entrepreneurs who contributed significantly to sustaining Sri Lanka’s economy during periods of crisis now feel abandoned by policymakers. According to her, many businesses entered 2025 expecting stronger industrial protection and clearer economic direction under the NPP administration. Instead, entrepreneurs say they are confronting worsening uncertainty and policy confusion.
Abeysundara warned that the absence of consistent policy frameworks has damaged investor confidence and weakened local industries already struggling with inflation, taxation, and reduced consumer spending. She argued that Government decisions are creating barriers for domestic enterprises while failing to address the influx of competitive imports that threaten local production.
One of the alliance’s strongest criticisms focused on monetary policies introduced to stabilise the US dollar and restore financial confidence. Entrepreneurs argue that higher interest rates have severely restricted access to capital, making expansion and survival increasingly difficult for small and medium-scale enterprises.
Many local manufacturers now face a dangerous combination of rising operational expenses and declining market demand. Business owners claim they are struggling to maintain production levels while coping with energy costs, import expenses, and limited access to affordable credit facilities.
SLUBA member Mahendra Jayasekara challenged official narratives suggesting the economy is steadily recovering. He argued that the Government’s optimistic economic messaging does not reflect conditions experienced by entrepreneurs operating across the country.
Jayasekara further alleged that economic policy decisions are being shaped excessively by international financial institutions such as the International Monetary Fund (IMF), World Bank, and Asian Development Bank (ADB). According to him, relying heavily on external policy prescriptions without understanding local economic realities could produce long-term damage to domestic industries.
He warned that Sri Lanka risks repeating past mistakes if policymakers continue ignoring the voices of entrepreneurs who possess practical business experience and direct understanding of market conditions. Economic recovery, he argued, cannot be achieved solely through fiscal reforms and international agreements while local industries continue weakening.
The growing frustration among entrepreneurs signals broader anxiety within Sri Lanka’s private sector. Many business leaders fear the country’s recovery strategy is becoming disconnected from domestic economic priorities and overly focused on satisfying international financial benchmarks.
Analysts believe that without urgent intervention to restore business confidence, strengthen industrial protections, and create clearer policy direction, Sri Lanka could face slower growth, rising unemployment, and declining entrepreneurial investment. For many local entrepreneurs, the promised economic transformation under the NPP Government now appears increasingly uncertain.