MSME stands for Micro, Small, and Medium Enterprises, which are crucial for economic growth, job creation, and innovation. These enterprises form the backbone of the economy, contributing significantly to national GDP. MSMEs are defined based on annual turnover and number of employees in Manufacturing and Service Sector in Sri Lanka. The upadated definition of an MSME, provides clear classifications to enable focused assistance for these businesses.
| Sector | Criteria | Medium | Small | Micro |
|---|---|---|---|---|
| Manufacturing | Annual Turnover | Rs. 351 Mn – 1 Bn | Rs. 21 Mn – 350 Mn | Rs. 20 Mn or Less than 20 Mn |
| No. of Employees | 51 - 100 | 10 – 50 | Less than 10 | |
| Service Sector | Annual Turnover | Rs. 351 Mn – 1 Bn | Rs. 21 Mn – 350 Mn | Rs. 20 Mn or Less than 20 Mn |
| No. of Employees | 51 - 100 | 5 – 50 | Less than 5 |
| Business Type | Criteria |
|---|---|
| Woman-owned / led Business |
A business qualifies as a woman-owned/led business if it meets the following criteria: (a) >50% owned by females, OR (b) >20% owned by females, AND • Has >1 female as a major decision-maker, • Has >30% of the Board of Directors comprising of females, where a Board exists. |
| Man-owned / led Business |
A business qualifies as a man-owned/led business if it meets the following criteria: >50% owned by males, excluding any situation that meets the criteria (b) above. |