National Employment Policy
EMPLOYMENT INTENSIVE GROWTH IN
SMEs AND INFORMNAL SECTOR
Thematic group on SMEs and Informal sectorProf. 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 Policy
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
RELATIVE SIGNIFICANCE OF
SMIs and SMEs




EMPLOYMENT – 32 % by SMIs
VALUE ADDED - 27 % by SMIs
EMPLOYMENT – 70 % by SMEs
ESTABS
- 70 % by SMEs
Export Performance of SMEs -2009
Large Number of Exporters ( %)
Expor
ters
10%
SME
expor
ters
90%
Export Turnover SME
export
(Rs.Mns)
ers
8%
Large
Export
ers
92%
RELATIVE SIGNIFICANCE OF
INFORMAL SECTOR- Employment
2009- %
Informal
Sector- %
Formal
Sector- %
Agriculture
28
5
Non-agriculture
34
33
Sub-total
62
38
Quality of Labour- Informal vs.
Formal by Level of Education - %
Informal
Sector
Formal
Sector
Below Grade 5
79.5
20.5
Grade 5-9
72.0
28.0
GCE O/L
49.4
50.6
GCE A/L & above
21.6
78.4
Total
61.9
38.1
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
Policy Gaps


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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
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

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
CONCLUDING REMARKS

Speed-up the implementation
process of Action Programmes
designed for SME and Micro
enterprise development
Please share your views
Thank you