Hinhalagoda lekamalage pulsi kavindya sandeepani ariyarathna

2.1. Data Analysis 
2.1.1. Secondary data analysis 
In the broadest sense of the word, the definition of research includes any gathering of 
data, information and facts for the advancement of knowledge. (Shuttleworth, 2008).In this 
section, the author will study third-party research data and conclusions in the first part of this 
chapter, which has aided author in developing this thesis's questionnaire for the primary 
analysis.These secondary data and statistics will be gathered from a variety of third-party 
sources, such as scholarly publications, websites, and research papers.Furthermore, such 
discoveries and results from other parties will assist the author in interpreting more correct 
conclusions and debates. The data analysis is done from the author's perspective. 
According to a research study made in 2011 by Malathy Knight, Buddhika Brahmanage 
& Anushka Wijesinha under the topic “Small and Medium Enterprises: Key to Inclusive Private 
Sector Development” (Knight, Brahmanage, & Wijesinha, 2011),they come with the following 
conclusion at the end of their reseach. According to the research, SMEs are critical for job 
creation and socioeconomic growth in low-income nations.The presence of regional differences 
in Sri Lanka, which are the outcome of a lengthy conflict and policy gaps in achieving balanced 
development, emphasizes the necessity of SME growth as a route to inclusive socioeconomic 
development.Growing the SME sector and presenting it as a key component of inclusive private 
sector development, on the other hand, presents substantial policy problems. However, the 
political economic realities of policymaking in Sri Lanka, which span multiple political 
regimes, show that policy decisions are mostly determined by powerful interest groups 
attempting to maximize rent opportunities.Given that development strategy that is not based on 
participatory decision-making contradicts visions of inclusive growth, there is a pressing need 
to expand the discourse space among stakeholders. 
In 2011, a research was conducted on the topic of “Creating a Conducive Environment 
for SMEs in Sri Lanka” by P.Pretheeba (PRETHEEBA, 2011) with the goal of comparing the 
development of SMEs in Sri Lanka to that of Singapore, a developed Asian country. The study 
goes on to examine empirical studies in order to determine the country's primary contributions 
and difficulties.The study's main finding is that Sri Lanka faces a number of challenges, 
including a lack of adequate and timely financing, a lack of capital and knowledge, a lack of 
suitable technology, low production capacity, constraints on modernization and expansions, a 
lack of highly skilled labor at an affordable price etc. Based on the findings of the study's 

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research and debate, Singapore has an exceptional telecommunications network, infrastructure, 
first-class transportation, and information technology, all of which have contributed to the 
country's status as an ideal location for SMEs.However, significant financial aid, training, and 
advising services are required to make the environment more effective.Sri Lanka's SMEs face 
comparable challenges as those in other Asian countries.According to this report, Sri Lanka's 
technology, infrastructure, financial market, and labor skill levels are all abysmal, and the 
country's support for these areas has to be addressed.Below is a table with the comparison of 
rankings in different elements between Singapore and Sri Lanka. 
Table 2.1 
Entrepreneur Business Environment Singapore and Sri Lanka (Doing Business, 2010) 
As it is shown in the above Table 2.1, in all the elements that have been considered for 
the comparison, While Singapore reside in the Top 10 of most of the rankings, Sri lanka is seen 
at a very low position in each sector. 
In a Research made in a more recent date, May 2020 by D.P. Gunawardana, A national 
Consultant in Sri Lanka , on the heading of “The Impact of COVID19 on the MSME Sector in 

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Sri Lanka” it provides an overview of Sri Lanka's socioeconomic features, including Gross 
national product ( GNP), development, workforce, and occupation by sector.At the End of the 
research there are very important conclusions he has arrived to, including the follows. 
Agriculture base SMEs have shown strong response to environmental shocks.Due to a lack of 
understanding and/or inability to meet bank standards, the majority of entrepreneurs have been 
unable to take advantage of government relief packages.The entrepreneurs are waging an uphill 
battle to recover from their financial difficulties.Many SMEs in remote regions are optimistic 
and anticipate things to get back to normal soon.Many people, however, require coaching and 
counseling in order to recover from their trauma. 
Figure 2.1 Employment By Sector (CBSL Annual Report , 2019) 
Among the recommendations the following points are highlighted. At this vital juncture, 
it's critical to develop methods to boost economic activity and progress toward a real plan to 
keep jobs while not sacrificing attention to the COVID19 epidemic, which has delivered the 
world's fastest and worst economic shock.The appeal process for providing bank loans and 
other alleviation packages should be expedited, and SMEs should be guided by public, private, 
Unions, and Industry Groups.Large and top half medium-sized firms frequently reap the 
benefits, while the micro- and small-scale sectors are frequently disregarded.While the former 
is also significant, the latter deserves equal consideration, not only as a social component but 
also in terms of GDP contribution.It is suggested that service-delivery institutions serve as a 
catalyst in this regard. 

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