Is Colombo a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Colombo has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Colombo gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Colombo

Funding is one of the most critical ingredients in building a successful startup – and Colombo offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

Colombo's early-stage funding scene is developing, with several local players supporting new ventures. Notable is the Lankan Angel Network (LAN), which focuses on seed and pre-seed funding, alongside VC firms like Lanka Ventures and Bluestone Capital. The government, through initiatives like Startup SL and the ICTA's Spiralation program, offers grants and support, aiming to boost the ecosystem. Despite these efforts, challenges persist, particularly a noticeable gap in the early-stage funding range, making it difficult for some startups to scale. While the ecosystem is growing, accessing sufficient capital remains a significant hurdle for many founders.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Colombo has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Colombo has a developing startup and innovation culture, ranking as Sri Lanka's top ecosystem. There's notable entrepreneurial activity, particularly in Software & Data, Marketing & Sales, and Edtech. The city features numerous coworking spaces like Hatch, Regus, CO-LABs, Hub 9, and Draper Startup House, fostering community and providing flexible workspaces. A variety of tech events, conferences, and workshops are held regularly, facilitating networking and knowledge sharing. The ecosystem provides support for early-stage founders, with initiatives like ICTA's Spiralation program offering seed funding and training. Incubators and accelerators, such as Hatch and John Keells X, also cater to startups at different stages. While standardized programs exist, there are also indications of personalized mentorship and support networks aiming to help early-stage companies grow. The ecosystem appears to support both early-stage and more mature startups, with a growing focus on nurturing local talent and improving the business climate.

For many entrepreneurs, the energy and resources available in Colombo can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Colombo, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Colombo is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Colombo has a growing talent pool for startups, supported by numerous educational institutions offering relevant degrees in IT, business, and engineering. Around 5,000 tech students graduate annually. Sri Lanka is recognized for affordable talent with high-end product engineering and problem-solving skills. Industry-specific skills in demand include digital literacy, IT skills like software development and data analysis, communication, leadership, and adaptability. The ecosystem is evolving, with initiatives to nurture local talent and improve the business climate. Local talent supports entrepreneurial growth by providing a skilled workforce, contributing to sub-sectors like Fintech, Govtech, and Agtech. The presence of incubators, accelerators, and industry-academia linkages further aids startup development.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Colombo can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Colombo boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Colombo offers a growing ecosystem for startups with various infrastructure and support systems. This includes co-working spaces, incubators like Hatch and John Keells X, and accelerators providing mentorship, networking, and funding opportunities. These resources help businesses refine models, scale operations, and secure investment. Government initiatives play a crucial role. The Information and Communication Technology Agency (ICTA) runs the Spiralation program offering seed funding and training. The "Startup Sri Lanka" initiative, also by ICTA, aims to improve the regulatory environment and connect startups with stakeholders like investors and mentors through an online platform. The government also provides incentives like tax breaks and facilitates access to finance and market opportunities.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Colombo. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Colombo Be Considered the Best Place to Launch a Startup?

There’s no doubt that Colombo provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in Colombo face significant challenges. Competition is notable, requiring startups to differentiate effectively. The cost of living and doing business in Colombo can be high, impacting operational expenses and the ability to attract and retain talent who may seek higher salaries to cover costs. Regulatory hurdles are also a major barrier. Issues include navigating complex business registration processes, which can be time-consuming and complicated, particularly for sole proprietorships and partnerships. Lack of clarity in tax procedures and other regulations also adds to the difficulty. Access to finance is another related challenge, often linked to the inability to provide tangible assets as security and regulations preventing certain funding methods like crowdfunding.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Colombo or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Colombo offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash