Industry Minister opens national tech show:

‘SMEs, key driver in manufacturing growth trail’

“Small and Medium Enterprises (SMEs) are set to become a key driver in the country’s new manufacturing growth trail. SMEs constitute 80 percent of our private industries and there is an urgent need to upgrade their capacity spearheaded by technology,” said Industry and Commerce Minister Rishad Bathiudeen.

Minister Bathiudeen was speaking at the SME Machinery, Technology and Services Exhibition 2011 inauguration at the Sirimavo Bandaranaike Exhibition Centre yesterday.

“The United Nations Industrial Development Organisation (UNIDO) announced that the world manufacturing output has recovered from the global recession and industrial output grew by 6.5 percent in the first quarter.

UNIDO noted that among blocs of developing economies, Asia showed the strongest first quarter performance of 13.3 percent,” he said. The minister said it did not give country specific data but mentioned of China’s growth helping here.

“We in Asia are part of this new trend and not left out.

Our industry modernisation efforts have suddenly become even more important as none other than the World Bank has made an important announcement. In its Global Economic Prospects 2011 report of June 7, the World Bank has announced that Sri Lanka is expected to lead South Asia’s strong economic growth together with India and Bangladesh,” Minister Bathiudeen said.

Speaking about Sri Lanka’s SMEs, Minister Bathiudeen said: “As for Sri Lanka’s own industrial landscape, 80 percent of our private sector industries fall in to small and medium category and therefore there is no doubt of the lead role played by them. It is then essential that we make the SME sector stronger and show the world the real capacity of our SMEs.

“More importantly, we should commit to modernize and upgrade our industrial technology on a continuous basis, be it SMEs or otherwise. Understanding this factor, our government, with the generous support of the World Bank has committed a huge outlay of Rs six billion to enhance Sri Lanka’s SME industries which will then be given to the SMEs as loans.”