MUMBAI: While music in most parts of the world is not just growing, but thriving, the Welsh music industry has been dealt a huge blow. The Welsh Music Foundation (WMF) announced that it would be suspending its operations after the Welsh Government refused to provide its core funding.

The WMF, which was started in 2000, has not only helped launch the careers of a number of Welsh music artistes, but has also promoted and supported interests of the country's music industry. The foundation revealed that the Government's grant it was receiving was an "extremely modest" ?160,000 per year.

Wednesday 30 June marked the end of a three-year core funding agreement that WMF had with the Welsh Government. Speaking about the situation, WMF chair Alan James said that for months the foundation was trying to negotiate with the Government on its core-funding. However, a six month extension offered to WMF while making arrangements for funding with an alternative source while providing the core service was deemed "unviable" by the foundation's board.

In the press release, WMF added that the foundation was "proud of the value and leadership" that it had shown in the industry. It went on to say that even on its modest revenue grant, it managed to generate more revenue in project value while serving several Welsh music businesses and even developing the country's music economy.

The release also stated a number of WMF's achievements including the launch of a music directory that serves 1705 music companies in Wales, producing 36 bespoke training events across Wales and also bringing World Music Expo WOMEX to Cardiff, which resulted in an economic impact of approximately ?3,177,000 among others.