The impacts of climate change are increasing at an alarming scale and impose very significant economic and non-economic costs. However, these costs are unevenly distributed, with the most vulnerable and resource-poor communities often bearing the heaviest toll. Self-employed individuals, entrepreneurs, and micro-, small-, and medium-sized enterprises (MSMEs) led by rural youth, women, and indigenous peoples are particularly susceptible.

In Sri Lanka, MSMEs are key contributors to the national economy, with over one million enterprises employing more than 2.2 million people (Department of Census and Statistics, 2014). Beyond the direct contribution to GDP and employment, entrepreneurs and MSMEs foster improved lives for individuals, families, and surrounding communities. Businesses with less than ten employees generated a substantial output of LKR 72.5 billion in 2020 (Department of Census and Statistics, 2020). However, the COVID-19 pandemic and subsequent economic challenges severely affected many MSMEs.