Risk management in Sri Lankan SME construction sector: identifying barriers and enablers

Abstract

This study investigates risk management practices in the SME construction sector in Sri Lanka, aiming to identify critical issues, enablers, and barriers. Through a mixed-method approach comprising expert interviews and a questionnaire survey, the research highlights significant risk management (RM) challenges unique to the Sri Lankan context. Key findings indicate that economic instability, lack of education in organisational management, and reliance on experience-based practices are major obstacles to effective RM. The study identifies "unawareness of available practices" and "keeping outdated procedures" as the most severe barriers to RM implementation. Unlike global literature, which often emphasizes financial constraints and time limitations, this research underscores the critical role of awareness and procedural updates in Sri Lanka's small and medium enterprise (SME) sector. The findings have implications for industry practitioners, academics, and policymakers, emphasising the need for targeted RM training, supportive regulations, and localised RM strategies. Limitations of the study include a small sample size and a focus on SME contractors in Sri Lanka, suggesting the need for further research in different contexts.