IDB Chief hails Budget as boost for SMEs

Monday, 25 November 2013 00:00 - - {{hitsCtrl.values.hits}}

Industrial Development Board Chairman Nawaz Rajabdeen yesterday hailed the Government’s 2014 Budget as a boon for small and medium enterprises. “The 2014 Budget is a great boost for industrial development, especially from the SMEs aspects. The Budget allocation has been increased for skills development, innovation, research and development which are important for industrial growth and enhancing exports,” the IDB Chairman said.

He also welcomed emphasis on Budget 2014 for development at regional and district level. Following are some of the key proposals in the 2014 Budget for which IDB Chairman had special commendation. SME funding Euro 90 million low cost funding for energy efficiency technologies for industries has been proposed by the budget. Use of energy is vital to Sri Lanka and it is composed of hidden costs due to subsidiary. Attention towards energy efficient technologies is a better trend for survival in the business competition in the international market. It is understood that the cost of production is increasing rapidly and energy cost is one of the key reasons. The cost of a product has a positive impact on market survival even though it is not a key factor. Industrial research and development Industrial research is the key element of business strategy in modern economy. It may be a new product or a new market for our local manufacturing industry. It is needed to get exposed to any potential area in production which can be converted to marketable products. Especially with the boom of tourism, we can harvest the maximum by presenting more and more potential products to the market. Research and Development and advanced technology will boost the local industry to sustain quality to compete with the imported products. Government has increased the budget allocation to address these issues. This will be an additional support for the SMEs. Lead export industries Most of the SME sectors are limited to the local market and require technological and market support for penetration to new markets overseas. Support is needed for the SME sector to touch international market giants such as the automobile industry, apparel industry and agro based industry. Other than earning of foreign currency it also demarcates Sri Lanka in the international arena. Woman entrepreneurs The majority of the Sri Lankan population are women but they are still considered as an underprivileged group. However rural women are capable and have enthusiasm to develop. Interest free loans have been proposed by the Budget for women entrepreneurs who will boost the micro industrial sector especially in rural areas. IDB has the opportunity to take the initiative with their regional network to provide entrepreneurship and technology. Skills development and education It is understood that each year about 45% of GCE (O/L) students drop out from the educational system. It is vital to train these students for a professional pathway to satisfy the skilled workforce requirement in the industrial sector. The Industrial Academy of the IDB has already initiated a professional skills develop program on industrial technologies. The refereed trainees have the capacity to initiate their own enterprises or they can work for other enterprises with their skills. The Budget has allocated a substantial amount for Skilled Development for youths. This will be an opportunity to develop micro and small industries to address unemployment in the country.