Sri Lankan SMEs amidst the COVID-19 Crisis: Assessing Impact and Combating Strategies
Keywords:Small and Medium Enterprises, COVID-19 Virus, Strategies
The Covid-19 epidemic had an impact on all global economic activities. Aim of this study is to identify how Covid-19 affected Small Medium Enterprises (SME) in Sri Lanka, what are the actions those affected SMEs have taken to survive during pandemic and implemented strategies for the sustainable future of their businesses. To investigate how Covid-19 affected SME in Sri Lanka, a qualitative research approach was used and Eight SMEs were interviewed via phone calls and video conference calls for data collection. The study's findings revealed that the majority of SMEs in Sri Lanka were severely impacted by the Covid-19 epidemic. s. However, in order to survive, SMEs have taken many steps and they have developed and implemented methods to ensure the long-term sustainability of their enterprises. As a result, methods such as maintaining a healthy cash flow, digital transformation, and improving product and service quality have been implemented to ensure long-term sustainability. The findings of this study will pave the way for SMEs in Sri Lanka to understand how they should react in a pandemic situation, what are the actions they should implement to survive during pandemic, strategies that SMEs should develop for sustainable future.
. Omar, A., Ishak, S., & Jusoh, M. “The impact of Covid-19 Movement Control Order on SMEs’ businesses and survival strategies.” Malaysian Journal of Society and Space, vol 16, pp 139-150, Jan 2020
. Beraha, I., & Duricin, S. “The Impact of COVID-19 Crisis on Medium-sized Enterprises in Serbia”. Economic Analysis, pp 14-27, June.2020.
. PricewaterhouseCoopers. “COVID-19 Outbreak: Impact on Sri Lanka and Recommendations”
. Nyanga, T., & Zirima, H. “Reactions of small to medium enterprises in Masvingo, Zimbabwe to Covid 19: implications on productivity.” Business Excellence Management, vol 10, pp 22-32, Oct 2020
. OECD. Tackling Coronavirus (COVID-19) Contributing to A Global Effort. Internet:
. Central Bank of Sri Lanka. Economic & Social Statistics of Sri Lanka, 2020
. OECD. OECD SME and Entrepreneurship Outlook 2019, OECD Publishing, Paris, Internet: https://doi.org/10.1787/34907e9c-en
. Ministry of industry and commerce. National policy framework for small medium enterprise. 2020
. Department of census and statistics. Non-agricultural economic activities in Sri Lanka economic census 2013/2014. Sri Lanka. 2013
. Nishantha, B. ‘Small and Medium Enterprise Sector (SMEs) in Sri Lanka: Significance, Opportunities and Challenges,” vol 6. pp 29-46,2018
. Robinson,J., & Kengatharan, N. “Exploring the effect of Covid-19 on Small and Medium Enterprises: Early Evidence from Sri Lanka.” Journal of Applied Economics and Business Research, vol 10, pp 115-125, 2020
. Qamruzzaman, M. “COVID-19 impact on SMEs in Bangladesh: An Investigation of What they are experiencing and how they are managing?”, July 2020
. Nurunnabi, M., Mohammed Alhawal, H., & Hoque, Z. “Recovery planning and resilience of SMEs during the COVID-19: experience from Saudi Arabia.” Journal of Accounting & Organizational Change, vol 16, pp 643-653. Nov 2020
. Lu, Y., Wu, J., Peng, J., & Lu, L. “The perceived impact of the Covid-19 epidemic: evidence from a sample of 4807 SMEs in Sichuan Province, China”: Environmental Hazards, vol 19, pp 323-340, May 2020
. V, Pratama., I, Santoso., & S, A, Mustaniroh. “Development strategy of SMEs in the new normal era of coronavirus disease 2019 (COVID-19): A literature review.” International Conference on Green Agro-industry and Bioeconomy. Conference proceeding on Earth and Environmental Science and International Conference on Green Agro-industry and Bio economy, 2020
. Turaev, I., & Ganiev, F. (2021). “Management Strategy of Small and Medium Enterprises during the Pandemic Covid-19”. Journal La Bisecoman, vol 2, pp 7-12, Mar 2021.
. Central Bank of Sri Lanka. Economic & Social Statistics of Sri Lanka, 2009
. Fitriasari, F. “How do Small and Medium Enterprise (SME) survive the COVID-19 outbreak?” Jurnal Inovasi Ekonomi, vol 5, pp 53-62, April 2020
. Who.int. Situation reports on COVID 19 outbreak. Internet: https://www.who.int/docs/defaultsource/coronaviruse/situationreports/20200402-sitrep-73covid-19.pdf?sfvrsn=5ae25bc7
. Ekanayake, E., Prasanna, P., Jayasundara, J., Gamage, S., Rajapakshe, P., Abeyrathne, G., & Gunasena, K. “Traditional SMEs with Cultural Heritage: Challenges in Modernity a Case Study from Sri Lanka” International Journal of Arts and Commerce, vol 9, pp 76-95, Nov 2020
How to Cite
Copyright (c) 2022 International Scientific Research and Researchers Association (ISRRA)
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Authors who submit papers with this journal agree to the following terms.