This paper investigates the role and perceptions of middle managers and how they influence business performance in Sri Lankan companies. The study presented here is based on a questionnaire survey of 121 middle managers regarding issues of communication, group decision making, and organizational leadership. Quantitative analysis of the responses suggests that organizations with collectivistic leaders achieve better performance. As a result, it is argued that collectivism, which includes middle management, can positively contribute to Sri Lanka’s business development and economic recovery.