Creating an Enabling Environment for SME’s in Sri
Lanka- The Role of the Public Sector
SME Forum - Plenary Session 1
N.M. Shaheid
Chairman/Director General
13th October 2014
“My aim is to establish the Small and
Medium scale Entrepreneurs (SME’s) as the
backbone of our national economy. I will
therefore take measures to bring them to a
national level and to compete in international
markets.”
His Excellency President
Mahinda Rajapaksa
WHAT IS NEDA?
National Enterprise Development
Authority was established under National
Enterprise Development Authority Act
under 17 of 2006 to promote, support ,
encourage and facilitate Enterprise
Development within Sri Lanka with special
emphasis to the Small and Medium
Enterprise Sector of the country
WHAT IS AN SME?
1. There is no universal definition of a SME.
2. How a ‘SME’ is defined in a particular country depends on many factors,
such as business cultures in that country; the size of the country’s
population; and even the political will of the government.
3. Different organizations and countries set their own guidelines for defining
SME’s. Various parameters such as invested capital, total assets, number
of employees or annual sales are frequently used in definition.
4. SME generally refers to a business entity with a small number of people
and a business turnover that is below a prescribed unit.
5. SMEs dominate the corporate community in many countries and they are
a major contributor of a country’s GDP.
A DEFINITION FOR SMALL AND MEDIUM
BUSINESSES IN SRI LANKA
Sectors/Size
Micro
No. of Employees
Annual Turnover
Asset Value
(Excluding Land
and Building
Small
No. of Employees
Annual Turnover
Asset Value
(Excluding Land
and Building)
Medium
No.of employees
Annual turnover
Asset Value
Primary
Agriculture
Manufacturing
Service
Less than 5
Less than 5
Less than 5
Less than Rs.200,000/- Less than Rs.250,000/= Less than Rs.200,000/=
Less than 5 Million
Less than 10 Million
Less than 5 Million
5-19
Rs.200,0001,000,000/Less than 10 Million
5-50
Rs.250,000-10 Million
Less than 20 Million
5-19
Rs.200,000/-=Rs.
1,000,000/=
Less than 10 Million
20- 50
1 Million – 5 Million
Less than 20 Million
51-150
10 Million- 25 Million
20-50
1 Million – 5 Million
ROLE OF GOVERNMENT IN SME
DEVELOPMENT
1. The role of the government is to enhance the survival rate of the SMEs
and to help them make the great leap so that today's SMEs will be turned
into tomorrows businesses.
2. Government generally provides financial and non-financial support.
3. The government recognizes the contribution of SMEs to the economy and
allocate funds to meet their specific needs, and upgrade their
management skills.
Internationalization of Local Businesses
NEDA facilitates the participation of regional SMEs in
International technology fairs – Organize business
delegations.
Thank you