Role of the Ministry of Traditional Industries
and Small Enterprise Development in
creating an enabling environment for SMEs
Mandate of the Ministry
 Developing Micro, Small and Medium Enterprises including
handicrafts and rural industries island wide, with special focus on
the rural economic development.
 The Ministry closely works with the other cluster Ministries,
Chambers and other concerned stakeholders in establishing a
supportive and enabling environment for developing and
strengthening MSMEs.
 The Institutions under the Ministry; Industrial Development
Board (IDB), National Crafts Council (NCC), National Design
Centre, and Palmyrah Development Board act as implementing
agencies for the development interventions
 The Provincial and District Offices networks of the institutions
enables supportive measures to MSMEs to be delivered strongly
and effectively.
Strategies Pursued
- Provision of developed work space for establishing industrial
production units
- Transfer of Technology for upgrading Production Processes,
Product Quality, gaining Market Access
- Creation of Awareness and providing opportunities for advanced
training
- Opportunities for gaining Access to Credit
- Establishing Marketing Linkages and Channels
Focus of development through creation of the
enabling environment
- Development of the Handicrafts Sector – covering 19 Clusters and
Introducing Innovative Products and Designs
And facilitating Exports by the Producers to the International
market
- Small and Medium Entrepreneurship Development – covering 15
Clusters; Targeting upgrade of 5,000 Small Scale Enterprises to
Medium Scale and 200 Medium Scale Enterprises to large Scale
each year
And Industrial Production Village Development
Intervention Methodologies
• Introducing creative new designs and Product Development
• Training and entrepreneurship development
• Establishment of Common Service Centres and other
infrastructure facilities
• Raw Material Support Provisions to MSME
• Facilitating access to Credit, Local and International Market
through arrangement for Sub Contracting, Buy-back and
Export Market Platform Linkages
SME Industrial Estates, Upgrading and Modernization
Poonthoddam,
Vavuniya
Negampaha,
Anuradhapura
Mihindala,
Anuradhapura
Lunuvila, Puttalam
Kaludawela, Matale
Pannala, Kurunegala
Pallekelle, Kandy
Ekala, Gampaha
Galigamuwa, Kegalle
Pannaluwa, Colombo
Kotagala,
Nuwara-Eliya
Horana, Kalutara
Buttala, Moneragala
Wawulugala, Kalutara
Pusella, Ratnapura
Karandeniya, Galle
Baddegama,
Galle
Beliatta, Hambantota
SUPPORT SERVICES EXTENDED
Liaison with Central Environmental Agency and other authorities for
Environmental Clearances
Linkage with Provincial and Local Authorities in regard to Building Approvals
etc.
Coordination with CEB for Upgrades
Sourcing of Skilled Employees
Technology Transfer Programmes
Linkages for outsourcing of work components
Sarasalai
(Jaffna)
Development of Traditional
Handicraft Villages, 2014
Allarai
(Jaffna)
Jaffna
No.of
benefici
aries
Sector
Total
estimate
cost (Rs.)
Mundalama
Higuregama
30
Thalakola
1.60
Kandy
Kalasirigama
30
Hana (Jute)
7.40
Gampaha
Alawala
30
Musical
Instrument
2.93
Jaffna
Sarasalai
30
Palmyrah Leaf
Handicrafts
2.90
40
Laquer
2.00
Kilinochchi
Kiranchchi
(Kilinochchi)
Mullaitivu
Vavuniya
Mannar
Trincomalee
Anuradhapura
Puttalam
Paththinipuram
(Trincomalee)
Manampitiya
(Polonnaruwa)
Polonnaruwa
Batticaloa
Mailambaveli
(Batticaloa)
Mundalama
Hinguregama
(Puttalam)
Galatharaya
(Kurunegala)
Alawala
(Gamapaha)
Kurunegala
Thalagune
(Kandy)
Matale
Kandy
Gampaha
Colombo
Navithanveli
Ampara
Badulla
Kegalle
Remunagoda/
Imbulgoda
(Kalutara)
Galle
Gandara/ Devinuwara /
Talalla
(Matara)
Village
Puttalum
Hambanthota Angulmaduwa
Jaffna
Allarai
30
Coir
1.29
Matara
Kiyaduwa
20
Bamboo
1.00
Kandy
Thalagune
25
Dumbara Rata
0.88
40
cane
1.46
Polonnaruwa Manampitiya
Kurunagala
Galatharaya
30
Thalakola
0.80
Kalutara
Remunagoda/
Imbulgoda
30
Rush & Reed
1.12
Matara
Gandara/
Devinuwara/
Thalalla
75
Bobbin Lace
1.13
50
Palmyrah Leaf
Handicrafts
0.63
Palmyrah Leaf
Handicrafts
2.80
(Amapara)
Kalasirigama
(Kandy)
Nuwara Eliya
Monaragala
Kalutara
District
Trincomalee Paththinipuram
Ratnapura
Hambantota
Matara
Kiyaduwa
(Matara)
Angulmaduwa
Ampara
Navithanveli
100
Batticalo
Mailambaveli
175
Killinochchi
Kiranchchi
75
Palmyrah Leaf
Handicrafts
Palmyrah Leaf
Handicrafts
1.40
1.00
Toddilay/Chankanai
(Jaffna)
Jaffna
Kilinochchi
Vannankulam
(Kilinochchi)
Enterprise Villages and Woman
Entrepreneurship, 2014
Selvapuram
(Mulaitivu)
Mullaitivu
District
Village
Mankulam
(Mulaitivu)
Vavuniya
Mannar
Trincomalee
Mahanelubewa
(Anuradhapura)
Wanathawilluwa
(Puttalam)
Nugawela
(Kurunegala)
Polonnaruwa
Kurunegala
Thalakola
2.1
Nuwara Eliya Ginigathhena
39
Lace,Jewelery
, Ornaments
4.6
15
Lacquer
4.4
48
Coir
2.1
Maussagolla
Badulla
Galle
Welladdaragoda
100
Coir Yarn
1.9
Puttalam
Mahanelubewa
15
Leather
1.1
100
Cachew
1.1
40
Batik
1.1
Anuradhapu
Wanathawilluva
ra
Maussagolla
(Matale)
Matale
Gampaha
Colombo
Batticaloa
Jaffna
Ampara
Toddilay/Chankanai
Jaffna
Selvapuram
100
Jaffna
Vannankulam
75
Mulativu
Mankulam
Kegalle
Nuwara Eliya
Monaragala
Ginigathhena
(Nuwara-Eliya)
Kalutara
Galle
Welladdaragoda
(Galle)
Ratnapura
Matara
Hambantota
Medamulana
(Hambantota)
Total
Cost
Estimat
e Rs. Mn
60
Hambanthot
Medamulana
a
Puttalam
Sector
Kurunegala Nugawela
Matale
Anuradhapura
No. of
Benefic
iaries
Palmyrah
Based Food
& Handicrafts
products
Palmyrah
Based Fiber
Production
Establishmen
t of
Handicrafts
Experience &
Sales Centre
4.6
3.1
2.0
Jaffna
Development of Pottery Villages
Chankanai
(Jaffna)
District
Kilinochchi
Village
Mullaitivu
Vavuniya
No. of Total
Famil Estimate
es Cost (Rs.
Mn.)
Anuradhapura Elappankulama
43
3.62
Kurunagala
Madawalagaraya
60
4.68
Gampaha
Polwatta
470
3.65
Matale
Dodamattawala
25
3.30
Nuwara Eliya
Puranagama
40
1.53
Matara
Kumbalgama
60
1.74
Batticoloa
Eravur
250
3.82
Colombo
Ranala
40
3.12
Jaffna
Chankanai
50
4.10
Gampaha
Webadamulla
25
0.17
Puttalam
Halabawatawana
51
2.54
Matara
Melpura
40
2.53
40
1.95
Mannar
Trincomalee
Elappankulama
(Anuradhapura)
Kudakelagama
(Anuradhapura)
Anuradhapura
Puttalam
Polonnaruwa
Batticaloa
Halambawatawana
(Puttalam)
Dodamattawala
(Matale)
Kurunegala
Madawalagaraya
(Kurunegala)
Polwatta
(Gamapaha)
Matale
Eravur
(Batticaloa)
Kandy
Gampaha
Webadamulla
(Gamapaha)
Badulla
Kegalle
Colombo
Nuwara Eliya
Puranagama
(Nuwara-Eliya)
Monaragala
Kalutara
Ranala
(Colombo)
Galle
Kumbalgama
(Matara)
Ratnapura
Matara
Hambantota
Melpura
(Matara)
Ampara
Anuradhapura Kudakelagama
Industrial Production Villages
Divi Neguma - Cottage Industry Development
• Component of the National Divi Neguma Livelihood
Development Programme
• Implemented through coordination of Ministry of Traditional
Industries and Small Enterprise Development, with 4 other
Ministries and 16 technology provider institutions
• Industry Show Case Exhibitions
• Technology
transfer,
training
and
entrepreneurship
development
• Facilitating access to Credit, Local and International Market
through arrangement for Sub Contracting, Buy-back and Export
Market Platform Linkages
Research supporting MSME Development

Product Quality Improvement and Preservation of kithul and
Palmyrah products - jaggery, treacle, soft drinks, sugar candy,
vinegar and sap to export quality standards. Quality assurance
through SLS and GMP at local level. Extension of shelf life.

Improve the productivity and yield: increasing sap yield (kasper
technology as in the case of Kithul), fruit yield and introducing
short trees (dwarf) to avoid the climbing risk, modern machines
to extract fibre and fruit pulp.

De- bitter the fruit pulp for creating beverages: Most palmyrah
products have bitterness. Hence, it is important to de-bitter the
palmyrah pulp to enable it to be fully utilized for beverage
production.
•
Identifying the potential of medicinal, health and nutritional
values of Kithul and Palmyrah products
SME Policy Measures
 Fiscal and Monetary incentives are very important promoting
and developing the MSME Sector and the Ministry works very
closely with the Ministry of Finance and Planning and the
Central Bank of Sri Lanka in these aspects.
 The Ministry and its Institutions facilitates and participates in
period industry cluster meetings held by H.E. the President
and implements decisions taken at such meetings.
 Facilitation for preparation of the National MSME Policy
• Introducing Creative New Designs and Product Development
 Assessment of Market Needs in Consultation with Exporters and
Local Sellers
 Transfer of Technology to Small Scale Producers on Product
Development including development of prototypes, Quality
Certification such as GMP, SLS,
 Increase Production Yields for Kithul and Palmyrah
 Introduction and Facilitation of Packing and Presentation of the
Products
Back
• Training and Entrepreneurship Development
 Imparting of advanced skills training through Master
Craftsmen training programmes
 Facilitation of Entrepreneurship development for identified
beneficiaries;
Imparting knowledge on Production Concepts and
Accounting
Confidence Building, Goal Setting and Systematic Planning
and Monitoring,
Commitment to Work, Quality and Efficiency Consciousness
Back
• Provision of Common
infrastructure facilities
Service
Centres
and
other
 Establishment of Production Centres in the Villages, operated
by the Village Societies for the common use of beneficiaries
 Establishment of Sales and Marketing Outlets
 Directional route markings to access the Village
Back
• Raw Material Support Provisions
 Providing essential Raw Material as initial working capital
 Support for sustainable access to Raw Material
 Research on alternative material usages and training and
support on usage of such alternatives
Back
• Facilitating access to Credit, Local and International Market
through arrangement for Sub Contracting, Buy-back and
Export Market Platform Linkages
 Financial Literacy programmes for Field Officers and SME
 Conducting of Banking Clinics
 Village/ Product Branding
 Facilitation of Buyer/ Seller Meetings
 Concessionary loan facilities for craftsmen/ industrialists to
meet Working Capital requirements