‘Even our SMEs suffered in global recession’-Rishad

• Calls Lankan Banks for greater involvement in SMEs

• “We praise $ 125 Mn support from IFC for SMEs” -Rishad

• IDB commemorates 45 Yrs with SMIDEX

SMEs claim 70% of Lankan enterprises and 23% of national employment. Despite SME’s strong role in the economy, country’s banking sector still looks the other way while our SMEs “too suffered during the global recession”. And the World Bank’s decision to support Lankan SMEs with $ 125 Mn is lauded. “Not only exports, even our SMEs have suffered during the global recession before bouncing back. Our banking sector still looks the other way when it comes to our SMEs as they are worried about recovering credit from SMEs. Do not avoid this risk. It is in such risks that great rewards and profits are found” said Rishad Bathiudeen (Minister of Industry and Commerce) on 23 May in Colombo.




Minister Bathiudeen was addressing the inauguration event of SMIDEX on 23 May by the Industrial Development Board under Ministry of Traditional Industries & Small Enterprises at BMICH, Colombo. According to the IDB, SMIDEX has been introduced by the IDB to mark its 45 year anniversary. SMIDEX is yet another national event showcasing the SMEs with special attention to technology, machinery, raw materials, business development and other services. Also present on the occasion were Basil Rajapaksa (Minister of Economic Development), Douglas Devananda (Minister of Traditional Industries & Small Enterprises), Weera Kumara Dissanayake (Deputy Minister of Traditional Industries and Small Enterprises), AHM Fowzie (Senior Minister), V. Sivagnanasothy (Secretary to Ministry of Traditional Industries and Small Enterprise Development), Anura Siriwardene (Secretary, Ministry of Industry and Commerce) and Nawaz Rajabdeen (Chairman-Industrial Development Board of Sri Lanka). SMIDEX is ably supported by Rishad’s Ministry of Industry and Commerce and sponsored by the Export Development Board under his Ministry.

According to data available with National Enterprise Development Authority, Lanka’s SMEs claim 70% of Lankan enterprises and 26% of national employment. 91% of Industrial Establishments are SMEs. Of the more than 4500 exporters, nearly 70% are export oriented.

“It is important to note that despite the so called understanding about the greatness of our SMEs, they continue to suffer from lack of knowledge, capacity and innovation. SME access to finance too is not satisfactory. Our banking sector still looks the other way when it comes to our SMEs as they are worried about recovering credit from SMEs. This is despite our Central Bank’s efforts to keep lending rates at low levels. I urge our banking sector to link with Sri Lanka’s SMEs much closer and become a direct stakeholder in our national development. Do not avoid this risk. It is in such risks that great rewards and profits are found” said Minister Bathiudeen and added: “In this background, I highly commend, the recent announcement by International Finance Corporation (IFC) office in Colombo to assist our SMEs with their valuable funding of $ 125 million. The SME sector also drives our employment levels in a significant way and impacts inflation levels. Not only our exports, even our SMEs have suffered due to the recent global recession before bouncing back. Therefore it is vital to sustain this sector at all times. Realising this need our government has continued its development on SMEs. The “Mahinda Chintana” vision of HE the President Mahinda Rajapaksa outlines SME entrepreneurs, to be the backbone of our economy. Thanks to His Excellency the President’s economic vision, in 2013 we achieved 7.3% GDP growth and, the Asian Development Bank, now forecasts, growth could reach, 7.5% in 2014. The SME focal point functioning under my Ministry called NEDA and the UNIDO focal point also under my Ministry have separately come forward to assist the sector in many ways. NEDA, which recently began to link our SMEs to global markets, through sme.lk has contributed to implement Divinaguma National Program, and provided, entrepreneurship, development training, for 1,124 beneficiaries. The successful Divineguma program by Economic Development Minister Basil Rajapaksa is well known across the country, and has contributed to upgrade our entrepreneurs at rural levels. Also among other entrepreneur development efforts of NEDA, are the new business creation, and expansion programmes, the Women Entrepreneur Development program, and the Cluster development program. I am pleased to inform you, that the UNIDO focal point under my Ministry too has in the recent times spent more than $ 6 six million, to support our SMEs. The latest initiatives, by UNIDO are the project on Bamboo processing in Sri Lanka, the livelihood development project in the Eastern Province and the Cinnamon Industry skills upgrading project. Developing SMEs is not the responsibility of one institution alone, but is a team effort of several stakeholders.”

According to data available with National Enterprise Development Authority under Ministry of Industry and Commerce




“SMIDEX is a forum for new market opportunities. IT helps boost Sri Lanka’s SMIs” said Nawaz Rajabdeen (Chairman-Industrial Development Board of Sri Lanka), addressing the event. “It is also a platform to share best practices, and strategies for our SME development, which is part of Mahinda Chinthana” Chairman Rajabdeen added.