N.M. Shaheid Chairman/Director General 13 th 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 Primary Agriculture ManufacturingService Micro No. of Employees Annual Turnover Asset Value (Excluding Land and Building Less than 5 Less than Rs.200,000/- Less than 5 Million Less than 5 Less than Rs.250,000/= Less than 10 Million Less than 5 Less than Rs.200,000/= Less than 5 Million Small No. of Employees Annual Turnover Asset Value (Excluding Land and Building) 5-19 Rs.200,000- 1,000,000/- Less than 10 Million 5-50 Rs.250, Million Less than 20 Million 5-19 Rs.200,000/-=Rs. 1,000,000/= Less than 10 Million Medium No.of employees Annual turnover Asset Value Million – 5 Million Less than 20 Million Million- 25 Million 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 Businesses NEDA facilitates the participation of regional SMEs in International technology fairs – Organize business delegations.

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