Informal sector

Healthy Socio-economic Recovery of Informal Sector Micro and Small Enterprises in Severely COVID-19 Impacted Districts of Sri Lanka

Target beneficiaries

The project will be implemented in two of the hardest hit districts – Kalutara and Gampaha - where a large number of MSEs in the informal economy struggle to survive and build back. The immediate beneficiaries will be the Employers and Workers in especially in informal sector Micro and Small Enterprises (MSEs) in Gampaha and Kalutara Districts, Small Enterprise Division officials operated in Gampaha and Kalutara

Specific project objectives

  • Micro and small enterprises apply COVID prevention measures in workplaces
  • Micro and small enterprises are better organized and have enhanced ability to resume and continue business operations


Implementation will be in collaboration with respective public and private sector institutions/organizations who would own and scale them up beyond those districts. The project will collaborate with the Ministry of Health and Ministry of Skills Development, Ministry of Labour to implement the respective project activities in the targeted districts. This will subsequently be replicated nationwide through their respective departments and local structures. For MSEs’ access to BDSs, the project will collaborate with the Small Enterprise Division (SED), Ministry of Youth and Sports and EFC to roll out project activities for the targeted enterprises within the districts. At the same time, the project will partner with SED to expand BDSs beyond the targeted districts. Overall, the scale-up plan is conceptualized with project strategies securely anchored in local institutional structures at the very outset of implementation.

Expected results

  • MSEs trained on safety measures/safety guidelines at the workplace
  • MSEs receive psycho-social support to better cope with the crisis and re-start/continue business operations
  • MSEs supported to obtain financial stimulus packages
  • MSEs in the supply chain receive pre-finance or line of credit from the buyer
  • MSEs collectivise/organsise for greater market access, competitiveness, and access to finance