Role of the Ministry of Traditional Industries and Small Enterprise Development in creating an enabling environment for SMEs

Mandate of the Ministry  Developing Micro, Small and Medium Enterprises including handicrafts and rural industries island wide, with special focus on the rural economic development.  The Ministry closely works with the other cluster Ministries, Chambers and other concerned stakeholders in establishing a supportive and enabling environment for developing and strengthening MSMEs.  The Institutions under the Ministry; Industrial Development Board (IDB), National Crafts Council (NCC), National Design Centre, and Palmyrah Development Board act as implementing agencies for the development interventions  The Provincial and District Offices networks of the institutions enables supportive measures to MSMEs to be delivered strongly and effectively.

Strategies Pursued -Transfer of Technology for upgrading Production Processes, Product Quality, gaining Market Access -Creation of Awareness and providing opportunities for advanced training - Opportunities for gaining Access to Credit - Establishing Marketing Linkages and Channels -Provision of developed work space for establishing industrial production units

Focus of development through creation of the enabling environment -Development of the Handicrafts Sector – covering 19 Clusters and Introducing Innovative Products and Designs And facilitating Exports by the Producers to the International market -Small and Medium Entrepreneurship Development – covering 15 Clusters; Targeting upgrade of 5,000 Small Scale Enterprises to Medium Scale and 200 Medium Scale Enterprises to large Scale each year And Industrial Production Village Development

Intervention Methodologies Introducing creative new designs and Product Development Introducing creative new designs and Product Development Training and entrepreneurship development Training and entrepreneurship development Establishment of Common Service Centres and other infrastructure facilities Establishment of Common Service Centres and other infrastructure facilities Raw Material Support Provisions to MSME Raw Material Support Provisions to MSME Facilitating access to Credit, Local and International Market through arrangement for Sub Contracting, Buy-back and Export Market Platform Linkages Facilitating access to Credit, Local and International Market through arrangement for Sub Contracting, Buy-back and Export Market Platform Linkages

Poonthoddam, Vavuniya Negampaha, Anuradhapura Lunuvila, Puttalam Pannala, Kurunegala Ekala, Gampaha Pannaluwa, Colombo Horana, Kalutara Wawulugala, Kalutara Karandeniya, Galle Baddegama, Galle Beliatta, Hambantota Pusella, Ratnapura Mihindala, Anuradhapura Kaludawela, Matale Pallekelle, Kandy Galigamuwa, Kegalle Kotagala, Nuwara-Eliya Buttala, Moneragala SME Industrial Estates, Upgrading and Modernization

SUPPORT SERVICES EXTENDED Liaison with Central Environmental Agency and other authorities for Environmental Clearances Linkage with Provincial and Local Authorities in regard to Building Approvals etc. Coordination with CEB for Upgrades Sourcing of Skilled Employees Technology Transfer Programmes Linkages for outsourcing of work components

Kiranchchi(Kilinochchi) Jaffna Kilinochchi Mullaitivu Mannar Vavuniya Trincomalee Anuradhapura Puttalam KurunegalaMatale Kandy Gampaha Colombo Kalutara Galle Matara Hambantota Ratnapura Kegalle Nuwara Eliya Badulla Monaragala Ampara Polonnaruwa Batticaloa Development of Traditional Handicraft Villages, 2014 Mundalama Hinguregama (Puttalam) Kalasirigama(Kandy) Alawala(Gamapaha) Sarasalai(Jaffna) Allarai(Jaffna) Kiyaduwa(Matara) Thalagune(Kandy) Manampitiya(Polonnaruwa) Galatharaya(Kurunegala) Remunagoda/ Imbulgoda (Kalutara) Gandara/ Devinuwara / Talalla (Matara) Paththinipuram(Trincomalee) Navithanveli(Amapara) Mailambaveli(Batticaloa) Angulmaduwa(Hambantota) DistrictVillage No.of benefici aries Sector Total estimate cost (Rs.) Puttalum Mundalama Higuregama30Thalakola1.60 KandyKalasirigama30Hana (Jute)7.40 GampahaAlawala30 Musical Instrument2.93 JaffnaSarasalai30 Palmyrah Leaf Handicrafts2.90 HambanthotaAngulmaduwa40Laquer2.00 JaffnaAllarai30Coir1.29 MataraKiyaduwa20Bamboo1.00 KandyThalagune25Dumbara Rata0.88 PolonnaruwaManampitiya40cane1.46 KurunagalaGalatharaya30Thalakola0.80 Kalutara Remunagoda/ Imbulgoda30Rush & Reed1.12 Matara Gandara/ Devinuwara/ Thalalla75Bobbin Lace1.13 TrincomaleePaththinipuram50 Palmyrah Leaf Handicrafts0.63 AmparaNavithanveli100 Palmyrah Leaf Handicrafts2.80 BatticaloMailambaveli175 Palmyrah Leaf Handicrafts1.40 KillinochchiKiranchchi75 Palmyrah Leaf Handicrafts1.00

Welladdaragoda(Galle) Nugawela(Kurunegala) Ginigathhena (Nuwara-Eliya) Maussagolla(Matale) Wanathawilluwa (Puttalam) Mahanelubewa(Anuradhapura) Toddilay/Chankanai(Jaffna) Vannankulam(Kilinochchi) Mankulam(Mulaitivu) Enterprise Villages and Woman Entrepreneurship, 2014 Jaffna Kilinochchi Mullaitivu Mannar Vavuniya Trincomalee Anuradhapura Puttalam KurunegalaMatale Gampaha Colombo Kalutara Galle Matara Hambantota Ratnapura Kegalle Nuwara Eliya Badulla Monaragala Ampara Polonnaruwa Batticaloa Selvapuram(Mulaitivu) District VillageNo. of Benefic iaries SectorTotal Cost Estimat e Rs. Mn Kurunegala Nugawela60Thalakola2.1 Nuwara Eliya Ginigathhena39 Lace,Jewelery, Ornaments 4.6 Matale Maussagolla15Lacquer4.4 Hambanthot a Medamulana48Coir2.1 Galle Welladdaragoda100Coir Yarn1.9 Puttalam Mahanelubewa15Leather1.1 Anuradhapu ra Wanathawilluva100Cachew1.1 Jaffna Toddilay/Chankanai40Batik1.1 Jaffna Selvapuram100 Palmyrah Based Food & Handicrafts products 4.6 Jaffna Vannankulam75 Palmyrah Based Fiber Production 3.1 Mulativu Mankulam Establishmen t of Handicrafts Experience & Sales Centre 2.0 Medamulana (Hambantota)

Industrial Production Villages

Divi Neguma - Cottage Industry Development Component of the National Divi Neguma Livelihood Development Programme Implemented through coordination of Ministry of Traditional Industries and Small Enterprise Development, with 4 other Ministries and 16 technology provider institutions Industry Show Case Exhibitions Technology transfer, training and entrepreneurship development Facilitating access to Credit, Local and International Market through arrangement for Sub Contracting, Buy-back and Export Market Platform Linkages

Research supporting MSME Development Product Quality Improvement and Preservation of kithul and Palmyrah products - jaggery, treacle, soft drinks, sugar candy, vinegar and sap to export quality standards. Quality assurance through SLS and GMP at local level. Extension of shelf life. Improve the productivity and yield: increasing sap yield (kasper technology as in the case of Kithul), fruit yield and introducing short trees (dwarf) to avoid the climbing risk, modern machines to extract fibre and fruit pulp. De- bitter the fruit pulp for creating beverages: Most palmyrah products have bitterness. Hence, it is important to de-bitter the palmyrah pulp to enable it to be fully utilized for beverage production. Identifying the potential of medicinal, health and nutritional values of Kithul and Palmyrah products

SME Policy Measures  Fiscal and Monetary incentives are very important promoting and developing the MSME Sector and the Ministry works very closely with the Ministry of Finance and Planning and the Central Bank of Sri Lanka in these aspects.  The Ministry and its Institutions facilitates and participates in period industry cluster meetings held by H.E. the President and implements decisions taken at such meetings.  Facilitation for preparation of the National MSME Policy

Introducing Creative New Designs and Product Development  Assessment of Market Needs in Consultation with Exporters and Local Sellers  Transfer of Technology to Small Scale Producers on Product Development including development of prototypes, Quality Certification such as GMP, SLS,  Increase Production Yields for Kithul and Palmyrah  Introduction and Facilitation of Packing and Presentation of the Products Back

Training and Entrepreneurship Development  Imparting of advanced skills training through Master Craftsmen training programmes  Facilitation of Entrepreneurship development for identified beneficiaries; Imparting knowledge on Production Concepts and Accounting Confidence Building, Goal Setting and Systematic Planning and Monitoring, Commitment to Work, Quality and Efficiency Consciousness Back

Provision of Common Service Centres and other infrastructure facilities  Establishment of Production Centres in the Villages, operated by the Village Societies for the common use of beneficiaries  Establishment of Sales and Marketing Outlets  Directional route markings to access the Village Back

Raw Material Support Provisions  Providing essential Raw Material as initial working capital  Support for sustainable access to Raw Material  Research on alternative material usages and training and support on usage of such alternatives Back

Facilitating access to Credit, Local and International Market through arrangement for Sub Contracting, Buy-back and Export Market Platform Linkages  Financial Literacy programmes for Field Officers and SME  Conducting of Banking Clinics  Village/ Product Branding  Facilitation of Buyer/ Seller Meetings  Concessionary loan facilities for craftsmen/ industrialists to meet Working Capital requirements