Creating an Enabling Environment for SMEs in Sri Lanka – The Role of the Public Sector. Presented...
Transcript of Creating an Enabling Environment for SMEs in Sri Lanka – The Role of the Public Sector. Presented...
Creating an Enabling Environment for SMEs in Sri Lanka – The Role of the
Public Sector.
Presented by Azmi Thassim, Past President, Hambantota District Chamber of Commerce
Services to the community Creating employment opportunities
Small and Medium Enterprises are recognised throughout the world as a very important part of the economic and social structure of a nation.
As this is true of the Sri Lankan situation too, creating an enabling environment for SMEs in Sri Lanka is vital.
Three key bodies hold this mandate
1. Parliament of Sri Lanka – Acts and Legislation 2. Provincial Councils of the nine provinces – Statutes3. Local authorities around the country (which come to more than 300) – By Laws
In Sri Lanka, it is the public sector (being the primary regulator), that has the authority,
responsibility and also the capability to create this environment.
The way forward; Establish a Ministry specifically focussed on
Entrepreneurship and SMEs. This ministry will work towards harnessing the powers
within the key bodies in delivering the best outcome for SME’s.
Avoid duplication of tasks by clearly demarcating responsibilities effecting SME’s.
Devolve authority to provincial & local bodies Learn from regional success stories from our
neighbours and adapt to suit our needs.
The public sector in Sri Lanka has been unable to optimise it’s contribution towards the creation of
the best possible environment for SME’s.
Knowledge, understanding and attitudes of the civil society regarding SME development should be improved.
Aspects of entrepreneurship should be taught to people following courses in vocational training centres.
Invite educators and capable professionals to volunteer. Provide opportunities for international study tours & learning
exchange programmes. Amend labour laws to suit requirements in keeping with the
times. (Gratuity, EPF legislation etc.) Access to credit at reasonable cost (i.e.: 5%-6%). Offer assistance to SME’s to offset initial set up and start up
cost by way of lower tax thresh holds, training and/or subsidies.
The way forward ..continued
Establish a continuous consultation process with the SMEs by inclusive representationThis can be achieved by regional chambers of
commerce by formalising SME’s into groups and associations thus giving them power and recognition.
The public sector should allow adequate representation through the chambers of commerce when formulating laws or offering incentives to SME’s. This will improve effectiveness and efficiency.
And last but not least…
The End