How to fund your business in Sri Lanka

How to fund your business in Sri Lanka is the biggest question any wanna-be entrepreneur has. I have so many friends who are dreaming about starting their startup but more than dreaming, they continuously nag about it!

They love complaining how miserable their lives and how mundane their work is. When one expresses how wretched his life is, there is always another to top that up with their story. Seems like no one’s life is going according to plan. And what appears to be their solution? Most of the time, it is to start their own business.

Here’s a typical conversation.

Random friend: I hate my job and life. I have to start a business of my own soon. Then I can live the way I want without answering to anyone else.

Me: So why don’t you start something?

Random Friend: Where’s money to start a business? I don’t have any funding.

Me: But do you have a business idea in the first place?

Random Friend: Mmmmm… No. But what about funding my business?

Idea first. Funding second

Most are worried about funds even before having a good business idea! After so many conversations like this, I have now figured out that “not having money” is just another excuse for them to abandon their dreams. Not having funds is not actually a problem but it’s the fear of starting something on their own. This is just another bullshit excuse to protect them from fear and failure.

Even though Sri Lanka is still baby stepping in the entrepreneur era, many Sri Lankans have started their businesses despite all adversity. You can do the same if you have a great idea. If you have a great idea that you believe in, here are the best ways to fund your business in Sri Lanka. So for all the excusers out there, you cannot say you don’t have money anymore!

1. Bootstrapping

A big mistake first time entrepreneurs make is overestimating the funding situation. You think you need millions to start a business. The first thing you should do is figure out how much you need. This is paramount. Most of the time, you don’t need a huge investment.

Check out how much I spent to start

Domain name (per annum) – Rs.3,300.00

Hosting (per annum) – Rs. 1,600.00

WordPress theme (Lifetime) – Rs. 7,200.00

Total cost – Rs. 12,100.00

If you’re planning to start the next, I understand that you need a bigger investment. But the point to take home is, it’s always important to know how much you need in the beginning. The rest, you can figure out on the go.

Bootstrapping is my favorite method of funding a business. Bootstrapping is when an entrepreneur funds her business with very little money, probably her personal finances. If you are getting paid a salary or if you have some savings in your bank, you can use that money to start your business. If you don’t have any savings, start saving from today. Cut down some of your pizza expenses.

The benefit of bootstrapping is; you can make your own decisions without the influence of others. It will be your business and your money. You are not responsible for any third party. So if you have some money saved in your bank, don’t be afraid to take some out and try on a new idea. If you fail in your first attempt, don’t get discouraged. Failure is a necessary evil.

2. Family and friends

If you have rich parents, consider yourself lucky. Borrow some money from your parents and work on your idea immediately. The difficult part is convincing your parents. Tell your parents how important it is to start your business. Use all the tricks in your pocket and get some money. You can use the good old art of crying! If that’s not gonna work, tell them that you will give out some shares in exchange for funding.

If you’re someone like me who wants to “stand on my feet” (read: stupid pride), try borrowing some money from your parents. Have a goal to repay them as soon as you make some money. When I wanted to import books for our cool online bookshop I borrowed some money from my parents. Hopefully, I can sell all the books soon! Friends are another great way to fund your business. If your parents are not rich enough, find a friend who is rich enough and is willing to throw some money at your venture. You can offer equity or make them your partner in the business. But when selecting your partners, be cautious to only select the ones who believe in the same vision. According to Lahiru Pathmalal, CEO of; partnering with people who share the same vision is one of the most critical factors in startup success.

3. Bank loans

Many Sri Lankans are aware of this option but no one seems to consider it enough. Did you know that banks provide personal loans to anybody who has a job? They don’t even question the reason for taking a loan. All you have to do is, go to a bank and tell them that you need a personal loan. They will ask for some documents and your income details. Once you deliver them, you will receive it within a short period.

Here’s the psychology behind loans. When it comes to “loans” people are so scared to start a business with a loan. Why is that? Most of us are drowning in credit card debts after buying so many unwanted crap that we will never use in the future but we’re afraid to get a loan to start a business!

Change your mindset about loans. It’s just another debt. Nothing biggie. If you know how to manage your finances, paying off your debts is easy. is a great website that I found to compare interest rates in Sri Lanka.

4. Startup Programs

The startup scene is picking up in Sri Lanka and there are some great programs and platforms that offer funds for startups. Check out our comprehensive list of more than 28 Startup Programs and Platforms to support your startup. 

5. Crowdfunding

Crowdfunding is the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.

There are different variants in crowdfunding and one of them is equity-based crowdfunding.Crowdisland is Sri Lanka’s first equity-based crowdfunding platform. If you have an idea or a product and if you’re looking for funds, you can definitely talk to them. Here’s everything you need to know about Crowdisland.

Recently we found another Crowdfunding platform in Sri Lanka. They are You can check them out too.

6. Angel Investors and Venture Capitalists

Angel investors invest in small startups or entrepreneurs. Often, angel investors are among an entrepreneur’s family and friends. The capital angel investors provide may be a one-time investment to help the business propel or an ongoing injection of money to support and carry the company through its difficult early stages.

A venture capitalist is an investor who either provides capital to startup ventures or supports small companies that wish to expand but does not have access to equities markets. Venture capitalists are willing to invest in such companies because they can earn a massive return on their investments if these companies are a success.

Check out below links for

Lankan Angel Network – This is a platform for angel and private investors who invest in high growth early stage Sri Lankan ventures. – This is a list of Sri Lankan angel investors.

BOVThis is a venture capital firm based in Sri Lanka and Singapore.

You can also check out our post on 28 Startup Programs and Platforms for more resources.

7. High Net-worth Individuals

Then you get the people who have lots and lots of money and are looking for worthwhile investments. If they like your idea, there is a chance that they would invest in your business. But how do you find them? Well, there is no hard and fast rule here. You can go to startup related meetups like SPIKE and other networking events. Eventually, you will get to know a few individuals who are looking to fund startups.

That’s all for now. If you know any other ways of funding your business in Sri Lanka, add a comment and let me know. I would love to share it with our readers. Now enough reading. Go and start your business! Don’t forget to subscribe to our newsletter below if you need great tips about starting up, investing and good life.

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