By Sanath Nanayakkare
A packet of natural energy food, ‘Mediseed’, made of Kurakkan, Olu, Red cowpea, Heenatiya and Suwadel pity on sale at a trade stall of the Sri Lanka-German SME Pavilion last week. Energy food producer of Radha Lanka, Kurunegala said his small company’s sales have gone up by 50% since partnership with GIZ, and if there is fair access to finance, his production capacity could be increased with enhanced manufacturing standards.
The Sri Lankan-German SME Development Programme aims to support a cohesive policy framework enabling Sri Lankan SMEs to grow in an eco-friendly manner through a wide range of technical assistance, innovation and improved access to finance, German Muller, Senior Advisor GIZ said in Colombo recently.
Muller said so at the inauguration ceremony of ‘SME Pavilion of Quality -2014’ which was held at the BMICH from December 3-7.
The Sri Lankan-German SME Development Programme supports inclusive growth of the SME sector island-wide, with specific focus on less developed regions such as North, East and Uva province. The project is implemented by Deutsche Gessellschaft fur international Zusammenarbeit (GIZ) in cooperation with Ministry of Finance and Planning, and the programme is funded by the Federal Ministry for Economic Cooperation and Development in Germany.
"A group of selected SMEs will be able to create links with national and international markets by increasing their quality standards, best manufacturing practices and competitiveness When SMEs are enabled to adopt accepted quality standards, they can upgrade their businesses, gaining access to new markets, locally and globally, resulting in a stronger economy for the entire country, Muller pointed out.
The programme also supports the development of a ‘National Policy Framework for SME Development’. It offers advice to policy makers to improve the enabling environment for SMEs to grow in an inclusive and eco-friendly manner.
A Sri Lankan spokesman of the GIZ told The Island Financial Review, " Sri Lankan Government places great emphasis on the small and Medium Enterprises (SME) sector as a major engine for growth and jobs, especially in the rural and former conflict-affected areas. However, the SME sector has not yet developed in full potential. Too few SMEs apply modern technologies. Their value addition is limited even in the agricultural sector, and they are not resource efficient. Economic participation of SMEs especially in remote areas must be further stimulated.
The GIZ programme provides a platform for technology transfer and innovation. Meanwhile, business development providers are strengthened to offer better services to SMEs, especially in rural areas. Availability of efficient services to SMEs is enhanced while all stakeholders are convened for one-on-one meetings.
A spokesman for the GIZ said," The programme also takes on the challenge of ‘Access to Finance'. Still many SMEs have not grown enough because they lack resources to invest in modernizing their businesses. They create only limited employment opportunities.
"Our programme works with both financial institutions and SMEs to bridge this gap. Staffs of some banks are being trained to better understand the specific demands of SMES, especially in rural regions, while SMEs are made aware of financing options available. We have already discussed this with the NTB, Union Bank and the Regional Development Bank.
"A cohesive policy framework is being implemented for SMEs to take advantage of green technologies and maintain nature’s capital for sustainable growth. Sri Lankans of all social, religious and ethnic background will benefit from sustainable employment opportunities created by SMEs in the future".
GIZ implements this SME Development Programme together with Sri Lanka Standards Institute (SLSI), Sri Lanka Food Processors Association (SLFPA) and Ceylon Chamber of Commerce.
They jointly hosted the SME Pavilion at the BMICH Hall C from December 3-7, coinciding with the 50th anniversary of the SLSI. The SME pavilion supports 50 regional SMEs to explore new markets and learn more about international certification.
"SLSI is the premier organization that promotes standardization and quality of products made in Sri Lanka. When SMEs acquire SLSI standard they can target ISO certification, the next level. Progress is a continued process, and we are there to support them, the spokesman said.
A further group of SMEs will participate in future sessions, learning how to expand with standards certified and services offered by SLSI.
Live demonstrations showed standard practices of different industries as a stimulant for SMEs to follow and adopt. The pavilion featured stalls of SLSI, SLFPA, CCC as well as partner SMEs representing various sectors.
"We work with national providers to help them offer improved and comprehensive services to SMEs in all national languages. GIZ cooperation with SLSI also covers the revision of the national quality policy (NQP), currently underway. Ministry of Technology and Research is responsible for the NQP and has mandated SLSI to carry out the actual policy development process.GIZ is supporting this process by providing international expertise, the spokesman further said.
