Sri Lanka moves to ease SME struggles with new advisory board

Sri Lanka has launched a National Advisory Committee to address challenges faced by small and medium-sized enterprises (SMEs), as the sector struggles with financial constraints and policy uncertainties.

The committee, which held its first session at the Parliamentary Complex, will operate under the co-chairmanship of Deputy Finance Minister Harshana Suriyapperuma and Deputy Industry and Entrepreneurship Development Minister Chaturanga Abeysinghe. It aims to provide policy recommendations and sustainable solutions to support SME growth.

The advisory committee includes experts from various fields to represent all aspects of small and medium scale entrepreneurs in accordance with current business needs and challenges. Senior government officials on this committee contribute to policy formulation, state financial management, and policy decisions for public administration procedures. 

The representation of the Central Bank of Sri Lanka has been included in the committee to obtain the necessary contribution for strengthening access to finance and creating the relevant environment. Through this, it is expected to obtain the necessary contribution to empower the small and medium enterprise sector by regulating the banking sector. 

This advisory committee has been structured to ensure proper representation for small and medium entrepreneurs, allowing them to contribute to the formulation of polices and strategies concerning them.

In addition, several financial sector experts, bankers, and university professors with authoritative knowledge of business from the education sector have been appointed to this committee. 

Through this, it is planned to obtain the contribution of all stakeholders who contribute to small and medium enterprise development for this national task. This aims to understand business problems and intervene practically to find sustainable solutions to issues. 

The main purpose of establishing this committee is to act as a national level intellectual body for developing strategies for the promotion and development of small and medium enterprises. Additionally, it provides strategic guidance for policy formulation while ensuring coordination efforts of all government and private institutions involved in small and medium enterprise development. 

Role of the National Advisory Committee

• Reviewing and updating the national policy framework for small and medium enterprises in accordance with the government’s development agenda and current development trends 
• Revising, updating, and monitoring the national plan for small and medium enterprises through an inter-ministerial coordination committee 
• Establishing a strong financial framework for small and medium enterprises. 
• Establishing a risk rating system for small and medium enterprises when accessing financial facilities 
• Addressing key challenges faced by small and medium entrepreneurs, including building a supportive environment for small and medium enterprises, facilitating technology transfer