The newly-launched Sarvajana Trust – a fresh independent fund dedicated to empowering women and youth across Sri Lanka was officially inaugurated last week in Colombo. The high-profile event gathered ambassadors, business leaders, entrepreneurs and supporters of the affiliated Sarvajana Balaya, led by MP Dilith Jayaweera.
The Trust aims to channel funding, mentorship and other key resources into grassroots entrepreneurship, by operating through local-government-level “Sarvajana Sabha” units embedded in communities.
In his keynote address, Jayaweera declared a break with conventional politics, stating: “We are stepping away from conventional politics. Our belief has always been in an entrepreneurial nation… Our focus is on creating wealth for Sri Lankans, which is the most important factor in building a happier and more hopeful future.”
He framed the Trust as a tool to turn human capital into economic assets: “By motivating our people, we convert liabilities into assets. The Sarvajana Trust is a tool that will activate real change and set the stage for an entrepreneurial state.” He described the initiative as rooted in patriotism, empathy and accountability, inviting all Sri Lankans to join “making a positive, enduring and impactful difference.”
Other speakers stressed governance. Trustee and Secretary Ranjan Seneviratne emphasised transparency and accountability as pillars of the fund’s operations. National Organiser Dilum Amunugama added that disbursements will target “deserving individuals at the community level especially those with the drive and potential to uplift themselves and initiate transformation from the ground up.”
On the one hand, the creation of the Sarvajana Trust holds genuine promise for Sri Lanka’s economy. By directing funds toward women and youth entrepreneurs, it addresses two critical gaps: one, the under-utilised human capital in the country; and two, the need to develop more diversified economic activity beyond traditional sectors. According to studies, supporting small and medium enterprises (SMEs) can generate employment and income growth which in turn bolsters income tax compliance and broader economic resilience.
Moreover, the fund’s localised “Sabha” framework may improve targeting and speed of support, reducing bureaucratic delays that typically hamper public-sector entrepreneurship programmes. In an environment where the Central Bank of Sri Lanka (CBSL) has recently signalled strong support for MSME revival through directed relief measures via commercial banks, the timing is apt.
However, there are significant risks to consider.
First, the sustainability of such a fund depends on clear funding sources and robust governance systems. Without long-term capital and well-defined oversight, the initiative could become just another state-related promise with limited follow-through. The emphasis on transparency is important but needs concrete structures.
Second, if funds are distributed without proper risk management – e.g., weak vetting of entrepreneurs, inadequate follow-up, or lack of performance measurement – the economic return may be low while fiscal cost mounts.
Third, in a context where Sri Lanka’s public finances remain under stress, any new funding initiative must avoid adding undue burden or diverting resources from essential infrastructure and debt servicing.
From the regulatory perspective, the Central Bank has increasingly flagged systemic risks in unregulated financial activities, urging stronger frameworks.
While the Trust is not a microfinance institution per se, the lesson is clear: even well-intentioned funds must adhere to proper governance, transparency, and alignment with broader financial stability
While the Central Bank has not specifically commented on the Sarvajana Trust, its published guidance and relief programmes suggest that supporting entrepreneurship is aligned with national policy priorities. The June 2025 circular encouraging banks to provide relief to SMEs underscores this orientation.
The Trust’s model channelled funds, mentorship, community-level engagement – can deliver public benefit if executed well: greater economic inclusion, more empowered youth and women, and a broader base of productive activity.
The Sarvajana Trust launches at a critical moment for Sri Lankan society and economy. If managed well, it could become a meaningful boost to grassroots entrepreneurship and a step toward inclusive growth. But success will hinge on strong governance, sustainable funding, measurable outcomes, and alignment with economic stability imperatives.
As Sri Lanka navigates its recovery and transformation, the Trust has potential— provided caution tempers ambition.
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