SMEs encouraged through budget incentives

'One of the challenges facing the Government is activation of development on a regional basis', Deputy Finance Minister Ranjith Siyambalapitiya said.

The position of private sector as an engine of growth was reaffirmed by him saying that main incentives have been given in the last budget for SMEs.

The incentives are meant to encourage private enterprises towards development. private sector is a key component to the development challenges facing the government. The experience, technology and efficiency of private sector are basic to development.

'Successive governments have acknowledged the importance of the private sector for a healthy economy. Inspite of the unfavourable tax structure among others the policy of Government towards private sector is clear.

Yet just having a stated policy, as important as it is, may not be enough to drive growth and development. For instance business friendly policies of the Government can be undermined by Government bureaucratic hurdles', he said.

Administrative structure in Sri Lanka comprising of Central, Provincial and Local Governments is complex. Besides there are various other statutory bodies operating. Naturally, such an administrative structure creates barriers.

Therefore, an important consideration to the private sector collectively is the mechanism available to access public officials charged with the responsibility for implementing policies on a single platform.

In recognition of the need for such a platform Federation of Chambers of Commerce and Industry, Sri Lanka (FCCISL) has introduced the District Enterprise Forums(DEF) on the lines of Micro, Small and Medium Enterprise(MSME) forum of International Labour Organisation under the Pro-poor Enterprise Growth. The Forum comprises of public and private sector enabling the public officials and businessmen to interact in the cause of business.

The objective of the forum is to improve the policy and regulatory environment for business through dialogue and to take proactive action where it warrants. What falls outside the scope of DEF affecting the business climate is expected to be taken to a national level forum for lobbying.

Secretary General of the FCCISL Samantha Abeywickrema considers it a boon to business and actively supports the concept by encouraging the district chambers.