For many Sri Lankan women entrepreneurs, financial literacy remains a major barrier to success. Understanding financial management, regulatory compliance and capital allocation is key to running a successful business. Yet, many women struggle with these aspects, limiting their ability to scale their ventures.
While financial challenges affect all businesses, women-led enterprises in the country often face additional hurdles, including limited access to capital, lack of business education and societal expectations.
‘Imagine the situation for women in the informal sector, where many don’t even keep financial records’
Knowledge gap
Gayani de Alwis, chairperson of the Women’s Chamber of Industry and Commerce Sri Lanka, notes the financial challenges faced by women entrepreneurs at various levels. ‘Financial literacy, especially at the lower levels, is quite limited, and even at the mid-level it remains inadequate,’ she says.
De Alwis shares the story of a jewellery entrepreneur who initially launched her business in 2019 but struggled to grow it due to family commitments and the impact of Covid-19. In 2022, she sought help from an accounting firm, where a female business coach guided her in restructuring her business model and setting financial goals.
However, the entrepreneur lacked the strategic knowledge to expand further. ‘She had set a financial goal but didn’t know how to achieve it. Imagine the situation for women in the informal sector, where many don’t even keep financial records or separate personal and business expenses,’ De Alwis explains.
‘Accountants can demystify financial concepts and empower women to take control’
According to the Women’s Chamber of Industry and Commerce Sri Lanka, women own only 25% of Sri Lanka’s micro, small and medium enterprises, a figure that shows both financial illiteracy and structural barriers to business growth. Many female entrepreneurs do not register their businesses due to fears of taxation or regulatory complications, further limiting their access to financial resources.
Evolving role
Financial professionals are increasingly stepping in to support female entrepreneurs in overcoming these barriers. ‘Female entrepreneurs often struggle with financial literacy, which can hinder strategic decision-making,’ says Rifka Ziyard, principal – tax at KPMG. ‘Accountants can provide tailored advisory services, helping women understand and manage cashflow, secure funding and develop robust financial strategies.’
In particular, accountants can help women navigate regulatory requirements. Many female entrepreneurs, especially in emerging markets, are unfamiliar with compliance obligations, making them vulnerable to legal and financial risks. ‘By offering educational programmes, conducting workshops, and providing one-on-one consultations, accountants can demystify financial concepts and empower women to take control of their businesses,’ she adds.
Driving growth
Identifying the importance of financial literacy in female empowerment, leading accountancy firms have introduced various programs to bridge knowledge gaps and drive business growth.
‘We provide participants with the tools, resources and networks necessary to expand’
KPMG, for instance, runs multiple training initiatives aimed at young professionals and students, equipping them with financial management skills. The firm prides itself on gender inclusivity, with a balanced workforce and six female partners in its Sri Lanka operations. ‘The glass ceiling is merely a myth at KPMG,’ Ziyard remarks.
EY has also made strides in promoting financial literacy among women through its EY Entrepreneurial Winning Women Asia-Pacific programme, which identifies and supports women entrepreneurs ready to scale their businesses. One notable participant from Sri Lanka is Sandamini Perera, co-founder and executive chairperson of Prime Group and Prime Lands Residencies.
‘Through this programme, we provide participants with the tools, resources and networks necessary to expand their businesses,’ says Anushka Tissera, director of human resources at EY. Additionally, the EY Young Tax Professional of the Year competition encourages female professionals to pursue careers in tax and finance.
Beyond structured programmes, EY also leverages digital platforms to share financial knowledge. The firm regularly publishes articles on financial literacy on Facebook and LinkedIn. ‘We provide quick, actionable advice through our “Top-10 Tips” posts, making financial knowledge accessible to women at all levels,’ Tissera explains.
Access to capital
One of the most significant financial challenges women entrepreneurs face is limited access to capital. Many struggle to secure funding due to a lack of collateral, credit history or financial literacy.
With traditional lending institutions often having stringent requirements that disproportionately affect female business owners, new financing models, such as milestone-based credit guarantees, are gaining traction. These schemes evaluate business growth before releasing capital in stages, reducing reliance on traditional collateral-based lending. Some Sri Lankan banks are now adopting collateral-free business loans for women, with accountants playing a key role in ensuring financial readiness for such funding opportunities.
‘Maintaining structured business finances is essential for long-term success’
Programmes like the National Women Entrepreneur Awards, spearheaded by the Women’s Chamber of Industry and Commerce Sri Lanka, showcase financial discipline as a key criterion for recognition. ‘We are making it clear that maintaining structured business finances is essential for long-term success,’ says De Alwis.
By strengthening financial literacy and empowering women through tailored advisory services, accountancy firms will become a key enabler of long-term financial inclusion, entrepreneurial resilience and economic recovery.
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