1. National Employment Policy EMPLOYMENT INTENSIVE GROWTH IN SMEs AND INFORMNAL SECTOR Thematic group on SMEs and Informal sector- Prof. Sunil Chandrasiri (Chair)- University of Colombo Ms. R. Jayatilleke –Industrial Technology Institute Mr.P.M.Karunarathne- Ministry of Industries and Commerce Mr.G.D.Silva – Bank of Ceylon Mr.Isuru Thilakarathne – Commercial Bank Mr. Delakshan Hettiarachchi – Commercial Bank Mr. W.C. Dheerasekera – NEDA Mr.K.W.Elapatha – Ministry of Productivity Promotion October 2011- Natioanl Seminar on Employment Pol icy

2. COVERGAE Relative Significance Major Issues Policy Gaps Recommended policies Promote decent work practices Empower Micro and SMEs with ICT capabilities Promote R&D orientation of SMEs Provide IP related services

3. RELATIVE SIGNIFICANCE OF SMIs and SMEs EMPLOYMENT – 32 % by SMIs VALUE ADDED - 27 % by SMIs EMPLOYMENT – 70 % by SMEs ESTABS - 70 % by SMEs

4. Export Performance of SMEs -2009

5. RELATIVE SIGNIFICANCE OF INFORMAL SECTOR- Employment 2009- % Informal Sector- % Formal Sector- % Agriculture285 Non-agriculture3433 Sub-total6238

6. Quality of Labour- Informal vs. Formal by Level of Education - % Informal Sector Formal Sector Below Grade 579.520.5 Grade 5-972.028.0 GCE O/L49.450.6 GCE A/L & above21.678.4 Total61.938.1

7. MAJOR ISSUES Inadequate technology support – Access to technology, lack of awareness on intellectual property rights (IPR) Lack of awareness among Micro and SMEs about existing institutional support i.e. financial, legal, technology support., Inadequate Business Support – Finance, Market Access, BDS, Infrastructure Services

8. Policy Gaps Absence of policy support on decent work practices and social protection Absence of policy support on intellectual property rights Absence of policy support for vulnerable workers Lack of sub-sector specific incentives

9. Recommended Policies Promote decent work practices and social protection of SME sector employees Empower Micro and SMEs with ICT capabilities to network and to improve efficiency and productivity

10. Recommended Policies Contd... Promote R&D orientation of SMEs through Small Business Innovation Research (SBIR) and Small Business Technology Transfer (SBTT) schemes. Provide IP (Intellectual property)– related services

11. CONCLUDING REMARKS Speed-up the implementation process of Action Programmes designed for SME and Micro enterprise development

12. Please share your views Thank you