Sunday Nov 17, 2024
Sunday Nov 17, 2024
Tuesday, 27 May 2014 00:00 - - {{hitsCtrl.values.hits}}
The World Bank’s decision to support Lankan SMEs with $ 125 million was lauded. “Not only exports, even our SMEs have suffered during the global recession before bouncing back. Our banking sector still looks the other way when it comes to our SMEs as they are worried about recovering credit from SMEs. Do not avoid this risk. It is in such risks that great rewards and profits are found” said Minister of Industry and Commerce Rishad Bathiudeen on 23 May in Colombo.
Minister Bathiudeen addressed the inauguration event of SMIDEX, held at the BMICH on 23 May, organised by the Industrial Development Board under the Ministry of Traditional Industries & Small Enterprises. According to the Industrial Development Board (IDB), SMIDEX has been introduced to mark its 45 year anniversary. SMIDEX is yet another national event showcasing the SMEs with special attention on technology, machinery, raw materials, business development and other services. Also present on the occasion were Minister of Economic Development Basil Rajapaksa, Minister of Traditional Industries & Small Enterprises Douglas Devananda, Deputy Minister of Traditional Industries and Small Enterprises Weerakumara Dissanayake, Senior Minister A.H.M. Fowzie, Secretary to the Ministry of Traditional Industries and Small Enterprise Development V. Sivagnanasothy, Secretary to the Ministry of Industry and Commerce Anura Siriwardene and Chairman of the IDB of Sri Lanka Nawaz Rajabdeen. SMIDEX is ably supported by Bathiudeen’s Ministry of Industry and Commerce and sponsored by the Export Development Board under his Ministry.
According to data available with the National Enterprise Development Authority, Sri Lanka’s SMEs claim 70% of Lankan enterprises and 26% of 
national employment. 91% of industrial establishments are SMEs while nearly 70% of the more than 4500 exporters, are export-oriented.
“It is important to note that despite the so called understanding about the greatness of our SMEs, they continue to suffer from lack of knowledge, capacity and innovation. SME access to finance too is not satisfactory. Our banking sector still looks the other way when it comes to our SMEs as they are worried about recovering credit from SMEs. This is despite our Central Bank’s efforts to keep lending rates at low levels. I urge our banking sector to link with Sri Lanka’s SMEs much closer and become a direct stakeholder in our national development. Do not avoid this risk. It is in such risks that great rewards and profits are found,” Minister Bathiudeen said.
“In this background, I highly commend the recent announcement by the International Finance Corporation (IFC) office in Colombo that it will assist our SMEs with their valuable funding of $ 125 million. The SME sector also drives our employment levels in a significant way and impacts inflation levels. Not only our exports but even our SMEs have suffered due to the recent global recession before bouncing back. Therefore it is vital to sustain this sector at all times. Realising this need, our Government has continued its development on SMEs.
“The Mahinda Chintana vision of President Mahinda Rajapaksa outlines SME entrepreneurs, to be the backbone of our economy. Thanks to the President’s economic vision, in 2013 we achieved 7.3% GDP growth and the Asian Development Bank now forecasts growth could reach 7.5% in 2014. The SME focal point functioning under my Ministry called NEDA and the UNIDO focal point also under my Ministry have separately come forward to assist the sector in many ways. NEDA, which recently began to link our SMEs to global markets, through sme.lk has contributed to implement Divinaguma National Program and provided entrepreneurship and development training for 1,124 beneficiaries.
“The successful Divineguma program by Economic Development Minister Basil Rajapaksa is well known across the country, and has contributed to upgrade our entrepreneurs at rural levels. Also among the other entrepreneur development efforts of NEDA, are the new business creation, and expansion programs, the women entrepreneur development program, and the cluster development program. I am pleased to inform you that the UNIDO focal point has in the recent times spent more than $ 6 million, to support our SMEs. The latest initiatives by UNIDO are the project on bamboo processing in Sri Lanka, the livelihood development project in the Eastern Province and the cinnamon industry skills upgrading project. Developing SMEs is not the responsibility of one institution alone but is a team effort of several stakeholders.”
“SMIDEX is a forum for new market opportunities. IT helps boost Sri Lanka’s SMIs,” Chairman of the IDB of Sri Lanka Nawaz Rajabdeen stated. “It is also a platform to share best practices and strategies for our SME development which is part of Mahinda Chinthana.”
