Empowering Sri Lankan Msmes: The Crucial Role of Skill Development in Fostering Future Tourism Growth

Tourism is a strategically important industry for Sri Lanka, making a significant contribution to the crises that hit the island economy in terms of income generation, foreign exchange earnings, job creation, attracting foreign direct investment and high value-added growth. It is the only sector which has bounced back very strongly and has a high potential for growth and expansion. The MSMEs account for 80 per cent of business enterprises and 75 per cent of employment in the tourism industry, and its growth prospects are seriously impacted by skill gaps and shortages. This is mainly a supply-side issue which has not been addressed for decades and is aggravated by COVID-19 (2020-21) and the economic crisis (2022 onwards) and requires immediate attention from policymakers, training providers and employers.