N.M. Shaheid Chairman/Director General

13th October 2014

Creating an Enabling Environment for SME’s in Sri Lanka- The Role of the Public Sector

SME Forum - Plenary Session 1

“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

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 NEDA?

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.

Sectors/Size PrimaryAgriculture

Manufacturing Service

MicroNo. of EmployeesAnnual TurnoverAsset Value(Excluding Landand Building

Less than 5Less than Rs.200,000/-Less than 5 Million

Less than 5Less than Rs.250,000/=Less than 10 Million

Less than 5Less than Rs.200,000/=Less than 5 Million

SmallNo. of EmployeesAnnual TurnoverAsset Value(Excluding Landand Building)

5-19Rs.200,000-1,000,000/-Less than 10 Million

5-50Rs.250,000-10 MillionLess than 20 Million

5-19Rs.200,000/-=Rs. 1,000,000/=Less than 10 Million

MediumNo.of employeesAnnual turnoverAsset Value

20- 501 Million – 5 MillionLess than 20 Million

51-15010 Million- 25 Million

20-501 Million – 5 Million

A DEFINITION FOR SMALL AND MEDIUM BUSINESSES IN SRI LANKA

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 BusinessesInternationalization of Local Businesses

NEDA facilitates the participation of regional SMEs in NEDA facilitates the participation of regional SMEs in International technology fairs – Organize business International technology fairs – Organize business delegations.delegations.

Thank you