In today’s Sri Lanka, being a young adult comes with a plethora of problems. Life feels uncertain the job market is competitive; “playing it safe” isn’t an option, but at the same time, a “stable” job won’t work. This is where youth entrepreneurship steps in a relatively new concept to Sri Lankans, but an exciting opportunity for a country where nearly a third of the population is under the age of 30. As traditional employment paths become more and more uncertain and unbelievably competitive, the youth of Sri Lanka are stepping into entrepreneurship with a drive and passion to not only build livelihoods, but also solve real-world problems.
Why Youth Entrepreneurship Matters Now
The 2018 Youth Labour Market Assessment addressed the impact of four gaps on youth employment and youth entrepreneurship in Sri Lanka.
Skills gap – the difference between the skills demanded by employers and the available skills.
Aspirational gap – the gap between the jobs that the youth want and the ability of the labour market to provide such opportunities.
Information gap – the gap arising from the lack of information flow between employers and potential youth employees, regarding employment opportunities.
Structural gap – the gap between the available skills and experience of job seekers and those currently employed.
These gaps aren’t just statistics on paper; they shape how an entire generation experiences the corporate world. Sri Lanka’s economic challenges over the past few years have forced many young people to rethink what “success” looks like. What used to be the norm a stable 9-5 job is no longer guaranteed, and for our generation, it’s not attractive anymore. Entrepreneurship offers youth the chance to create opportunities and take the stage rather than wait endless years for a promotion at a desk job that would never come.
More importantly, young entrepreneurs bring fresh perspectives. In an ever-evolving world where adaptation is the key to survival, who better than young entrepreneurs to trust to manipulate the technology available these days to our benefit? They’re more likely to adopt digital tools, embrace innovation, and respond to changing consumer behaviour. The market doesn’t respond to the same old marketing campaigns and tricks, and not adapting to change could cost companies millions. Perspective and change matter.
Key Challenges Facing Young Entrepreneurs
Despite the growing interest and much needed change, young entrepreneurs in Sri Lanka are often reluctant to begin due to a few technical and cultural barriers.
1. Access to finance remains one of the biggest hurdles. Most young people lack the collateral, credit history, or family wealth to make it on their own or to obtain the necessary loan funds from financial institutions. While grants and competitions exist, they are often limited, highly competitive, or poorly publicized.
2. While entrepreneurship is increasingly discussed in schools and universities, there is a noticeable lack of practical business exposure. Many young founders enter the space without hands-on knowledge of cash flow management, legal needs, or sustainable business.
3. Social pressure and fear of failure also play a significant role in Sri Lankan society, where stability is highly valued. Entrepreneurship and abstract jobs or ideas are still seen by many families as risky or unreliable, which can discourage youth from taking the leap or push them towards failure.
4. Additionally, technical processes such as business registration and taxation can feel overwhelming, especially for first-time founders without guidance or mentorship or with a lack of practical business knowledge.
The Way Forward
Despite these challenges, all hope is not lost. In fact, this is one of the most promising times to be a young entrepreneur in Sri Lanka with countless successful youth entrepreneurs in the corporate field as well as the creative entrepreneurship world.
The digital economy has lowered entry barriers significantly. With access to social media, e-commerce platforms and remote work opportunities, young people can start businesses with minimal capital, and many Sri Lankan youth are already monetizing their current skills in fields such as content creation, design, marketing, software development and online education and are thriving at it.
Support ecosystems like university-linked innovation hubs, and youth organisations are providing mentorship, networking opportunities, and exposure. Initiatives by the Sri Lankan government like the Thurunu Diriya initiative are aimed at empowering young entrepreneurs by providing financial assistance to help them start or expand their businesses during critical phases. While access is not yet equal across the country, these platforms are definitely helping bridge critical gaps and pave the way forward.
For youth entrepreneurship to truly thrive, a collaborative effort is needed from the youth, our society and policymakers alike. Educational institutions should focus more on experiential learning and real world problem-solving instead of the same old theoretical concepts that are taught. The private sector can play a stronger role through mentorship, partnerships, and market access, and most importantly, society must redefine how it views failure not as a dead end, but as part of the learning process.
Youth entrepreneurship is not a flawless journey, and it doesn’t need to be. Every experience in life is full of trial and error, ups and downs, the good and the bad. It’s not about succeeding on the first try but about building resilience, hope, and trust in yourself. While challenges remain, the opportunities are growing and the potential is undeniable. With the right support and mindset, Sri Lanka’s youth can move from being job seekers to job creators – driving not just economic growth, but meaningful change. Youth entrepreneurship is really the next chapter for Sri Lanka being written one bold idea at a time.
Written By: –
Rtr. Lisari Kahandage
(Junior Blog Team Member 2025-26)
Design By: –
Rtr. Pasan Jithnuka
(Junior Blog Team Member 2025-26)
