The Action Plan to Develop Inclusive and Sustainable Business Capacities in Sri Lanka is a comprehensive strategy aimed at fostering sustainable and equitable development led by the private sector in Sri Lanka. It is aligned with the vision of the Government of Sri Lanka and its Strategy to Promote Inclusive and Sustainable Businesses in Sri Lanka to Achieve the Sustainable Development Goals.

The Strategy, adopted by the Cabinet of Ministers in February 2024, notes the limited capacity of businesses and stakeholders to effectively create social and environmental impact at scale and seeks to put forward a road map for developing the capacities of both government agencies and businesses.

The objectives of the present background report are to assess existing capacities, identify gaps and chart a path forward for developing an action plan to build stakeholder capacities for inclusive and sustainable private sector development. It contains a proposal of capacity development activities in six thematic areas, including certification, accreditation and impact reporting; branding and recognition; access to finance and investment; engaging low-income and vulnerable groups; building green business opportunities; and value chain development and export readiness.

The findings underscore the need to enhance the inclusive and sustainable business capacities within Sri Lankan businesses to generate social and environmental impact effectively or extend their existing impact. It identifies specific interventions targeted towards export-oriented medium-sized and large enterprises operating in priority sectors, including agriculture, apparel and textiles, information technology and business process outsourcing, tea and tourism.