SMEs will be the future - Treasury Secretary

Sanjeevi JAYASURIYA

The small and medium enterprises (SMEs), micro enterprises and self economy need to derive maximum benefits from the current economic strategy. The SMEs will be the future where there will be a home grown Sri Lankan economy free of poverty and SME driven, Treasury Secretary Dr P B Jayasundera said.

“The tax concessions are extended to the SME sector with the expectation of making it a vibrant and viable sector to become the livewire of the economy.

However, the private sector needs to invest in creating capital to support these SMEs,” he said.

The focus is on SMEs for poverty alleviation and the vision is a poverty free society. The SMEs in the country need to be more mature and develop as the world is shifting towards this sector. The sector should become a feed centre with further consolidation in its position.

There is a US $ 50 million fund to support SMEs and it is necessary to restructure the entire sector. With adequate resources and commitment SMEs have a future and a major role to play in the economy. The sector is resilient and survived under trying conditions.

The SME sector needs to be re-oriented with required skill development to ensure higher productivity.

“We will mobilize technology for this sector to become competitive and to become more efficient. The sector should enjoy the lower tax regime. The banking sector support is essential for the sectorial growth,” Dr Jayasundera said.

The focus of the SME should be the value addition as in most cases it is the sub contract performer. The value addition is the right direction and it is important that the sector go up in the value chain. The re-scheduling and restructuring will be the strategy for the sector.

The investment fund created as a budget proposal needs to support the SME sector.

The self-economy is equally important as the SME sector and it too could contribute to the economy in a significant manner,” he said.