SL will be powered by a strong SME Policy

At the International Conference in Chennai, India on ‘Evolving SME’s policies among SAARC countries’ Sri Lanka’s development scenario was presented by Rohantha Athukorala Board Director EDB and IDB where it was revealed that very shortly Sri Lanka will be powered with a strong SME policy under the Ministry of Industry and Commerce so that it will help spruce up the economic activity of the SME and also provide a structure for integration with SME’s in the SAARC region.

Sri Lanka’s SME scenario was presented by Rohantha Athukorala. The President of the Federation of Chamber of Commerce Kosala Wickramanayake and Minister for Industries and Commerce Rishad Bathuideen sat on the panel with Dr.Rama Raju the renowned SME Expert of India noted the salient points.

Some of the key elements of the new SME policy that will take form will be a clear vision including a precise national definition of who an SME is and future strategy that will include a high powered SME Policy Unit (SMEPU) at the Ministry of Industry and Commerce which will include the establishment of an SME Authority which will be a full-fledged autonomous institution for SME development.

Athukorala went on to say that under the direction of the Minister of Industry and Commerce the government was encouraging the active participation of Venture Capital Companies and Leasing Companies to provide credit support for SMEs whilst also instilling financial discipline in SMEs sector so that access to finance becomes possible. The logic being that, one of the key issues for SMEs not having the teeth to take loan financing is that there is poor financial disciplines and rigour that the banking community expects when finance is to be provided.

Another key development will be the establishment of ‘Technical Service Centres’ at district level linked to a ‘Technology Development Fund so that a comprehensive and up-to-date business development services (BDS) can be at the support of a Small and Medium enterprise in any part of the country. The speaker also mentioned that the government was in the process of introducing a simplified tax system for the business sector at large that includes SMEs so that the ease of doing business index will be more competitive of Sri Lanka driving a stronger integration amongst SMEs.

The formation of industry clusters on a sub-sector basis and promoting sub-contracting with proper targeting for improving the technological capabilities of SMEs was a another strategy that will come into play in the country whilst Industrial estate development to add to the current industrial estates that are geographically scattered will give a stronger regional perspective said the Sri Lankan speaker. The latest being the Atchchuweli Industrial zone in Jaffna that was being developed together with Indian funding.

However the most important development that will evolve said Athukorala was that the enabling business environment for SMEs in Sri Lanka will be conducive will access to all parts of the country’s resources thereby making Sri Lanka’s SME sector very competitive and broad based.

The Sri Lankan delegation thereafter answered questions from other policy makers from India, Pakistan, Bhutan, Maldives, Nepal and Bangladesh whilst many Indian SME committed to invest in Sri Lanka that include Rice Mills, Canning factories for fishing where the value exceeded 50 million dollars.