Fresh boost for local SME sector with new national advisory committee

• Committee expected to provide guidelines for formulating policies necessary to develop SME sector
• All stakeholders operating under different institutions will be coordinated as a single group
• Advisory committee will be implemented with contributions from both public and private sectors 
• Committee to consist 14 members

In an effort to address issues faced by local small and medium enterprises (SMEs), the Ministry of Finance announced this week the establishment of a national advisory committee.

This advisory committee is expected to provide guidelines for formulating policies necessary to develop the SME sector, the Ministry said.

Accordingly, all stakeholders operating under different institutions will be coordinated as a single group, and the sector will be formally organised.

The advisory committee will be implemented with contributions from both the public and private sectors. It will function under the Ministry of Finance and Economic Development and the Ministry of Industry and Entrepreneurship Development.

The committee consists of seven members from government institutions and seven experts in the field, each contributing expertise in various aspects of SME development.

It will comprise of the Director General of the Department of Fiscal Policy (responsible for policy formulation related to valuation and various charges); The Director General of the Department of Trade and Investment Policy (providing policy input on tariffs); the Director General of the Development Finance Department (focusing on increasing financial access for SMEs and other necessary activities); a representative from the Ministry of Industry and Entrepreneurship Development; a representative from the Ministry of Trade, Commerce, Food Security, and Cooperative Development (supporting market access for SMEs); a representative from the Banking Supervision Department (enhancing SME access to finance through banks while regulating the banking sector); and a representative from the Regional Development Department (contributing to the promotion of SME business initiatives).

The Ministry of Industry and Entrepreneurship Development will nominate seven experts in the relevant subject for the committee.

According to the Ministry of Finance, the Institute of Chartered Accountants of Sri Lanka, in collaboration with other professional accountancy bodies, is expected to support this national mission by expediting the introduction of a scorecard/rating mechanism to improve financial accessibility for SMEs.

The overall objective is to provide more effective solutions to the issue of collateral by facilitating necessary loan guarantees for bank financing, in collaboration with the National Credit Guarantee Institute Limited (NCGIL).