A large number of small and medium businesses are on the verge of winding up as those SMEs now face financial constraints due to loss of business as a result of corona virus lock down during 52 day countrywide curfew, Labour Department survey observed
Labour Department survey report will be presented to Labour Relations Minister Dinesh Gunawardena and relevant authorities to review its findings presented and implement its recommendations to rescue collapsing institutions, Department official disclosed.
The e-survey has collected data on the present situation of private sector establishments affected due to COVID-19 and over 2000 companies completed and submitted the relevant questionnaire through the department website on or before May 15.
A total of 2764 private sector establishments had responded to the survey, with 58.59 per cent of establishments belonging to the Colombo District.
All 21 types of industries included in the International Standard Industrial Classification (ISIC) of All Economic Activities have been captured, with the manufacturing sector taking the lead with a group of 28.65 per cent of the total responded establishments.
53 per cent of the establishments had their businesses ‘closed’ during the survey period (months of April, May), with only 3 per cent of the establishments capable of functioning ‘fully’ the survey revealed.
The total employment in these establishments in the month of February was 596,022, with a staggering 64.26 per cent of the employees not finding work during the survey period.
1084 establishments had indicated that they would be unable to pay salaries to their employees.
(LIN)