Sri Lankan SMEs account for 53% of GDP
Small and medium-scale traders entrepreneurs from several districts converged in Colombo last week to take part in the trade fair – ‘Aadayam 2017’ held at the BMICH.
This is part of a programme launched by the United Nations Development Programme (UNDP) in 2013 to reduce inequalities in 10 districts by supporting around 400,000 people and among them, a group of 200 medium small and micro level entrepreneurs. Participants came from Ampara, Anuradhapura, Batticaloa, Jaffna, Kilinochchi, Mannar, Monaragala, Mullativu, Puttalam and Vavuniya
The objective of the exhibition was to create a favourable platform for these SMEs to promote and help them connect with each other and expand into larger markets.
These entrepreneurs and producers have been supported by UNDP in collaboration with the Government of Sri Lanka, under the Governance for Local Economic Development programme, through projects funded by the Government of Canada, the European Union and the Government of Norway.
Speaking at the event, Lovita Ramguttee, Country Director, UNDP Sri Lanka, said that the 2030 Sustainable Development Agenda is a plan of action for people, planet and prosperity and noted that they believe that SMEs present an important opportunity to develop the existing potential in the country.
She stressed that while producing more they need to make sure that these products are competitive and that they have access to national and international markets so entrepreneurs can sustain their businesses.
Rishad Bathiudeen, Minister of Industry and Commerce said that SMEs are providing 45 per cent of employment and 75 per cent of the total enterprises in the economy.
The EU, through the International Trade Centre of Geneva has extended support for a large scale SME development project in Sri Lanka, he said and indicated that they have commenced a 4-year project to increase the SME trade competitiveness in regional and EU markets using this fund.
The project budget is US$9 million or 8 million Euros and aims to enhance the export competitiveness of the SMEs, efficiency of cross-border procedures and SMEs’ capacities to comply with cross-border procedures, improve compliance and quality infrastructure services to meet quality and requirements in the regional and EU markets.
Sri Lanka has more than one million registered SMEs, each employing three persons on average. Taken together with other micro enterprises and SMEs that are not registered, the sector makes a sizeable contribution to the economy –an estimated 52 per cent of GDP.