Sri Lankan start-ups to get funding from USAID’s ‘YouLead’ project
Even though Sri Lanka has plenty of talent and enthusiasm among its growing young entrepreneurs, a stumbling block is the lack of capital funding to start their own businesses to showcase the innovative ideas or business models to the rest of the world.
On the one hand youth unemployment is on the rise, on the other hand there is a shortage of workers. It’s a serious gap between the information, education, training and skills that youth are receiving and the needs of Sri Lanka’s growing private sector.
The US government through its development agency, the United States Agency for International Development (USAID) launched the ‘YouLead’ project last week at the Ceylon Chamber of Commerce, investing US$ 12 million to create a more market-oriented, skilled and flexible youth workforce.
Minister of Skills Development and Vocational Training, Chandima Weerakkody at the launch of the project pointed out, “The biggest challenge in Sri Lanka is unemployment while finding skilled employees is another major challenge. It is an international issue.” Some 80 per cent of employed youth come from the rural sector while 65 per cent of women are unemployed, he added.
He also mentioned that only nine per cent of women are in the tourism sector. The industry needs to encourage and employ more women.
Mr. Weerakkody noted that Sri Lankan start-ups have showcased many innovative ideas but many have failed due to lack of funds. The project should also assist youth who are talented and invest in their start-ups,.
‘YouLead’ project will be a match maker between the employer and employee, he stated.
US Ambassador to Sri Lanka and Maldives, Atul Keshap said that recent statistics reveal, 70 per cent of unemployed people in Sri Lanka are youth aged 15 to 29.
Unemployment within this age group is nine times larger than unemployment in the rest of the population. More than 278,000 students leave the school system without admission to university each year and it is estimated that more than a quarter of a million young Sri Lankans between the ages 15 to 29 are unable to find a job.
He noted that Sri Lanka is a growing economy that is creating jobs. “Sri Lanka’s tourism sector will require an estimated 300,000 new employees and the construction sector which is also booming will require an estimated 400,000 new employees by 2020. It is the private sector that creates these jobs,” he added.
The YouLead initiative will link unemployed Sri Lankan youth to both new and existing jobs and expand self-employment opportunities. Driven by skills development, on the job training, mentoring services and private and public sector linkages, the initiative will also improve youth access to finance to start their own businesses, he noted.