Sri Lanka faces the challenge of making its enterprises more productive, dynamic and globally competitive. This is necessary to promote and sustain a more rapid and better distribution process of development.
Therefore, policy initiatives are vital to remove constraints to develop national enterprises for economic gains, a Senior Banking official who works closely with the SME sector told Daily News Business.
* Enterprise base - a starting point to improve overall performance
* SMEs account for 80 - 90 percent of total enterprises
* SME Guide Book 2009 launched
The existing enterprise base is an important starting point to improve the overall performance and development of the enterprise sector. It is essential to have a more enterprise friendly policy environment that would address the issue of improving performance and competitiveness, he said.
`An industrial policy framework has been proposed by the Government with the vision of a large base of vibrant and competitive world-class manufacturing industrial firms to generate higher economic value added, higher profitability and sustainable employment to offer wider opportunities for improved job quality and higher family income to alleviate poverty.
This would provide an opportunity to develop a framework for `Enterprise Sri Lanka`, an enterprising nation in the 21st century, he said. SMEs account for 80 - 90 percent of the total number of enterprises in Sri Lanka and contribute 30 percent in terms of value addition and accounts for 32.7 percent of employment from the agriculture sector, 26.3 percent of employment from the industrial sector and 41 percent employment from the service sector.
Seventy-five percent of the SMEs are outside the Western Province indicating the sector`s importance in the equitable distribution of wealth, thereby reducing the regional imbalances in prosperity, he said.
The SME Guide Book 2009 was launched last week with the objective of disseminating SME policies and instruments to SME managers and SME users. It also provides an information base to develop more comprehensive SME policy directions.