From Kane Ella to Baba’s Place: The Rise of SMEs by Young Entrepreneurs

by Our Economic Affairs Editor

“Tourism is about making connections—connections between people, between cultures, and between a traveller and a place.” — Rosita Missoni

The tourism sector in Sri Lanka has long been a significant driver of economic growth, providing employment opportunities and helping to promote the island’s rich cultural heritage. With its exceptional natural beauty, diverse culture, and vibrant history, Sri Lanka is home to many globally sought-after tourist destinations. However, it is the rise of small and medium-sized enterprises (SMEs) in the tourism and hospitality sector, particularly those founded by young local entrepreneurs, that is providing new avenues for economic development in the post-pandemic landscape.

Entrepreneurs like Akila Malith Silva, the founder and owner of KANE ELLA, and Malindu Abeygunasekara, the visionary behind Baba’s Place in Madiha, are at the forefront of this movement. Their ventures, located in popular tourist hotspots such as Ella and Matara, represent an exciting shift in Sri Lanka’s tourism industry—one that combines innovation, local culture, and the entrepreneurial spirit to create lasting impacts on both the local economy and the national tourism scene. Their businesses are not only contributing to the national economy but also providing valuable lessons in the importance of supporting SMEs in the tourism sector.

The Boom in Sri Lanka’s Tourism Sector

Sri Lanka’s tourism industry has seen a steady growth trajectory in recent years, with the island nation being recognised globally for its scenic landscapes, pristine beaches, and historic landmarks. From the tea plantations of Kandy and Nuwara-Eliya to the ancient ruins of Anuradhapura, Sri Lanka offers diverse experiences for tourists seeking culture, adventure, and relaxation. The regions of Ella and Matara, in particular, have witnessed a remarkable increase in visitor numbers in recent years, driven by their proximity to popular tourist routes, spectacular natural surroundings, and easy accessibility from Colombo.

The booming tourism sector creates a unique opportunity for local entrepreneurs to tap into the market and contribute to the nation’s economic development. The influx of foreign visitors brings with it a growing demand for accommodations, restaurants, and activities that provide authentic local experiences. In this context, the emergence of new SMEs such as KANE ELLA and Baba’s Place is integral to both the growth of the tourism industry and the broader economic landscape. These businesses are vital not only because they meet the needs of visitors but because they create local jobs, boost regional economies, and support cultural exchange.

KANE ELLA: A Vision of Culinary Innovation in Ella

Akila Malith Silva’s venture, KANE ELLA, located in the picturesque town of Ella, is an excellent example of how SMEs can elevate the tourism experience in Sri Lanka. Ella, famous for its scenic views and trekking destinations such as Ella Rock and the Nine Arches Bridge, has seen rapid growth in its tourist numbers over the years. As more tourists flock to the region, the demand for high-quality dining experiences has also increased. Silva’s restaurant, however, is not just about food; it’s about crafting an experience that combines culture, creativity, and community.

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Silva describes KANE ELLA as a place that “prides itself on offering a menu that goes beyond the typical fare,” adding his own innovative twist to Sri Lanka’s traditional cuisine. “While many restaurants in Ella offer traditional Sri Lankan dishes, we take it a step further by adding our own innovative twist to both local and international cuisines,” he shares. At KANE ELLA, the fusion of international techniques with local ingredients creates a fresh and bold culinary experience that stands out in a crowded market.

By focusing on the use of fresh, locally sourced ingredients, KANE ELLA not only provides tourists with an exceptional dining experience but also helps support local farmers and suppliers. The restaurant’s dedication to highlighting Sri Lanka’s rich culinary heritage, alongside international flavours, ensures that guests from all over the world can enjoy an authentic yet unique taste of the island. As Silva highlights, “Our chefs blend the finest local ingredients with international techniques, creating dishes that are bold, flavourful, and unlike anything you’ve tasted before.”

But the restaurant’s mission extends beyond just serving food. Silva envisions KANE ELLA as a space that fosters connection and community. “At KANE ELLA, it’s not just about food — it’s about building connections, sharing stories, and creating lasting memories,” he says. This commitment to creating a welcoming and friendly atmosphere helps to elevate the experience for both local and international visitors. By offering guests a warm, inviting environment, KANE ELLA is not just a restaurant but a community hub where people can bond over great food and exceptional service.

In addition to its culinary offerings, KANE ELLA is also dedicated to celebrating Sri Lankan culture through a series of cultural events and collaborations with local travel agencies. These events bring together locals and tourists alike, offering them the opportunity to experience Sri Lanka’s rich traditions and vibrant arts scene. Silva adds, “We plan to host themed evenings, food festivals, and other events that celebrate both the heritage of Ella and the diverse cultures of our international guests.”

Baba’s Place: A Unique Experience in Matara

Further south in Matara, Baba’s Place, owned by Malindu Abeygunasekara, is another exemplary SME that showcases the growing vibrancy of Sri Lanka’s tourism sector. Matara, known for its stunning beaches and laid-back atmosphere, is a key destination for both local and foreign tourists seeking coastal relaxation and adventure. For Abeygunasekara, the vision behind Baba’s Place was to create a dining destination that stands out and provides visitors with an unforgettable experience.

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Drawing on his background in automobile engineering and interior design, Abeygunasekara’s journey into the hospitality industry may seem unconventional, but it is precisely this combination of technical expertise and creative passion that has made Baba’s Place a success. His earlier venture, Genwood, a furniture and interior design company, laid the foundation for Baba’s Place, where his meticulous attention to detail and design aesthetic come to life in the restaurant’s ambience. As Abeygunasekara notes, “Baba’s Place is more than just a restaurant; it’s a novel experience.”

Baba’s Place stands out not only for its high-quality food offerings but also for its strategic location on the main Galle Road, directly facing the Indian Ocean. The restaurant’s picturesque setting and casual yet vibrant atmosphere make it an ideal spot for tourists to unwind and enjoy the breathtaking views of the southern coastline. Abeygunasekara’s commitment to creating a welcoming space for both locals and tourists has contributed to the restaurant’s rapid success. “Whether you’re a traveller exploring the wonders of the South Coast or a local looking for the perfect beachfront escape, Baba’s Place invites you to unwind and indulge,” he says.

The menu at Baba’s Place is diverse and caters to a wide range of tastes, with seafood being a standout feature. Guests can enjoy everything from traditional Sri Lankan dishes to international favourites, all crafted with fresh, local ingredients. The focus on seafood highlights the region’s coastal abundance, and as Abeygunasekara shares, “We offer a diverse selection of dishes that cater to every palate, from seafood lovers to those craving traditional Sri Lankan flavours or international favourites.”

“Sri Lanka is a place that captures the imagination, from its palm-fringed beaches to its lush landscapes and rich cultural history.” — Lonely Planet

The Importance of Supporting SMEs in Tourism

The success stories of KANE ELLA and Baba’s Place demonstrate the incredible potential of young, local entrepreneurs in the tourism sector. By creating businesses that offer unique, high-quality experiences for tourists, these SMEs contribute not only to the local economy but also to the wider growth of the national tourism industry. In order to ensure that more young entrepreneurs can rise to the occasion and develop successful ventures, government support is essential.

As Silva and Abeygunasekara have demonstrated, running a successful tourism-related business requires more than just a passion for food or hospitality; it requires innovation, a deep understanding of the local market, and a commitment to quality. Government initiatives that offer financial assistance, training, and resources for SMEs can play a pivotal role in fostering the next generation of tourism entrepreneurs. Silva expresses this need for support, stating, “For young people in Sri Lanka to succeed, there must be more focus on providing the tools, training, and opportunities that will help them grow their businesses.”

By nurturing the growth of SMEs in the tourism sector, the government can stimulate job creation, improve the quality of services offered to tourists, and ultimately contribute to the broader national economy. As Abeygunasekara points out, “It’s about offering something unique, something that sets us apart from the competition.” In this regard, SMEs like KANE ELLA and Baba’s Place are not just businesses but vital contributors to the sustainable growth of Sri Lanka’s tourism industry.