SME SECTOR IN SRI LANKA

Definitions of SME’s Total Assets Value Excluding Land & Building less than Rs. 01 Mn- Micro Industries Total Assets Value Excluding Land & Building Ranging between Rs 01 to 20 Mn- Small Industries Total Assets Value Excluding Land & Building Ranging between Rs 20 to 50 Mn- Medium Industries Source- Ministry of Industry & Investment Promotion, White Paper December 2003

Definitions of SME’s Capital Investment less than SLR 04 Mn is SME Source- Industrial Development Board Capital Investment less than SLR 20 Mn Excluding Lands & Buildings is SME Source- Export Development Board Contd:….

Definitions of SME’s  Capital investment less than SLR 20 Mn Excluding Lands & Buildings or Electricity usage 50 KwA is SME Source- Bank of Ceylon  It has Independent Ownership & Personalized Management Source- Small Business Act 1994 Contd:….

Importance of SME’s  A Breeding Ground for New Industries  Innovators of New Products  Using Potential Resources in Rural Areas.  Providing Large Job Opportunities  Requiring Minimum Investments  Supply of Cheap but Quality Goods & Services  Solution for the Unemployment Problem

Problems faced by SME’s  Financial Hardships  Technology Problems  Marketing Problems  Not Appropriate Access to BDS’s  Insufficient Knowledge on SME Sector (Marketing, Costing, Record Keeping )  Lack of Government Policies to Develop SME Sector  Lack of Personal Interests of Entrepreneurs to get Resources & Improvement  Competition between SME & MNs  No ways to Reach Internet Resources  Political Interference ( to Loan Schemes, Grantings, Trainings)