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CA Sri Lanka President Manil Jayesinghe addressing the gathering[/caption]
If nothing else, the current crisis has shown how vulnerable Sri Lanka's small and medium-sized enterprise (SME) sector really is. Despite businesses making a shift towards resilience in the last few years, nothing could have prepared local SME leaders for the impact of the Covid-19 pandemic.
Across the globe, SMEs have proven to be a critical part of fostering a culture of disruption and innovation. In Sri Lanka, SMEs have already proven to be an integral part of the country's economy and play a significant role in achieving our economic vision.
Contributing to 45% of domestic employment and 52% of Sri Lanka’s gross domestic product (GDP), according to the National Policy Framework for SME Development. Despite this, SMEs are the most vulnerable businesses to external impacts, as seen in the last few months.
Even the National Export Strategy of Sri Lanka (2018-2022) acknowledged the need to “strengthen Sri Lankan exporters’ market entry capacities” and support “the integration of SMEs from across Sri Lanka into the export value chain”, as this would help increase the overall generation of income in the country.
Seeing the true impact these SMEs have on the local economy, the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) recently introduced a new initiative which aims to transform business owners in the SME sector into successful entrepreneurs across the country, with the ability to add value to the business world while
[caption id="attachment_109745" align="alignright" width="392"]
CA SME Task Force Member Chaaminda Kumarasiri addressing the invitees[/caption]
contributing to the national economy.
The programme is the first initiative that is being conducted by the CA SME Task Force which was initiated last June in an effort to uplift the SME segment. Speaking to The Sunday Morning Business, CA SME Task Force Member Chaaminda Kumarasiri stated that the institution decided on setting up this task force after identifying SMEs as a major contributor to the country’s economy.
“As the national accountancy organisation in Sri Lanka, we thought of using our 6,000-plus members, who are based both in the country and outside the country, to help the local SME sector. Our first programme is aimed at helping local SMEs fill the gap in their governance systems, such as bookkeeping, by creating a pool of mentors who are dedicated to support them for free.”
The mentoring initiative by CA Sri Lanka which is conducted in collaboration with Sanasa Development Bank PLC (SDB) was launched in Galle with the participation of a large number of SME leaders in the region.
The task force will implement a sustainable model where finance professionals can work as agile business partners to assist SMEs in their journey to grow, accelerate, and sustain their business in the long term.
The mentoring initiative is set to spread throughout the country, and CA Sri Lanka has planned on selecting and developing a total of 500 entrepreneurs at the initial phase, covering a minimum of 20 SMEs from each district in Sri Lanka, according to Kumarasiri.
[caption id="attachment_109744" align="alignleft" width="392"]
CA SME Task Force Chairman Lakshman Abeysekera speaking to the guests[/caption]
The mentors for the project will comprise of CA Sri Lanka members, CBA members, and aspiring members following the corporate and strategic level examinations from the CA Fraternity, who possess in-depth understanding and experience in business operations.
Kumarasiri stated that the institution also recently entered into a Memorandum of Understanding (MoU) with SDB to provide SMEs with better access to finance and essential busines
s acumen for their long-term success. The agreement plans to pave the way for SMEs to continue to be an integral part of Sri Lanka’s future journey while continuing to be an important pillar in adding value to the socioeconomic development of the country.
Speaking on the initiative, Confederation of Micro, Small, and Medium Industries (COSMI) Founder President Nawaz Rajabdeen stated that this was a very good move as it helps the local SME sector move towards a more positive future. He explained that the local micro, small, and medium enterprises (MSMEs) sector needs the support of such institutions as the sector is considered the backbone of the economy.
[caption id="attachment_109743" align="alignleft" width="389"]
SDB CEO Thilak Piyadigama delivering his speech[/caption]
“We need the help of these professionals now more than ever. For example, post Covid, we have around 3,500 women entrepreneurs who have registered with us, and these entrepreneurs are starting to market their products and services, so we need people who know now to navigate through such issues.”
Rajabdeen stated that the current local SME sector is facing various issues, with the top one being that there is no money available for research and development in the budget. He explained that since Covid began, the local banks have been given Rs. 50 million to help SMEs. However, many of the regional SMEs have no access to these funds as the banks have no physical presence in their areas.
He also pointed out that there are currently 1.8 million registered MSMEs, and an estimated 800,000 more in the informal sector; therefore, these businesses need the help of programmes, such as CA Sri Lanka's mentorship programme, to help them grow and to better help the country's economy.
CA Sri Lanka President Manil Jayesinghe addressing the gathering[/caption]
If nothing else, the current crisis has shown how vulnerable Sri Lanka's small and medium-sized enterprise (SME) sector really is. Despite businesses making a shift towards resilience in the last few years, nothing could have prepared local SME leaders for the impact of the Covid-19 pandemic.
Across the globe, SMEs have proven to be a critical part of fostering a culture of disruption and innovation. In Sri Lanka, SMEs have already proven to be an integral part of the country's economy and play a significant role in achieving our economic vision.
Contributing to 45% of domestic employment and 52% of Sri Lanka’s gross domestic product (GDP), according to the National Policy Framework for SME Development. Despite this, SMEs are the most vulnerable businesses to external impacts, as seen in the last few months.
Even the National Export Strategy of Sri Lanka (2018-2022) acknowledged the need to “strengthen Sri Lankan exporters’ market entry capacities” and support “the integration of SMEs from across Sri Lanka into the export value chain”, as this would help increase the overall generation of income in the country.
Seeing the true impact these SMEs have on the local economy, the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) recently introduced a new initiative which aims to transform business owners in the SME sector into successful entrepreneurs across the country, with the ability to add value to the business world while
[caption id="attachment_109745" align="alignright" width="392"] CA SME Task Force Member Chaaminda Kumarasiri addressing the invitees[/caption]
contributing to the national economy.
The programme is the first initiative that is being conducted by the CA SME Task Force which was initiated last June in an effort to uplift the SME segment. Speaking to The Sunday Morning Business, CA SME Task Force Member Chaaminda Kumarasiri stated that the institution decided on setting up this task force after identifying SMEs as a major contributor to the country’s economy.
“As the national accountancy organisation in Sri Lanka, we thought of using our 6,000-plus members, who are based both in the country and outside the country, to help the local SME sector. Our first programme is aimed at helping local SMEs fill the gap in their governance systems, such as bookkeeping, by creating a pool of mentors who are dedicated to support them for free.”
The mentoring initiative by CA Sri Lanka which is conducted in collaboration with Sanasa Development Bank PLC (SDB) was launched in Galle with the participation of a large number of SME leaders in the region.
The task force will implement a sustainable model where finance professionals can work as agile business partners to assist SMEs in their journey to grow, accelerate, and sustain their business in the long term.
The mentoring initiative is set to spread throughout the country, and CA Sri Lanka has planned on selecting and developing a total of 500 entrepreneurs at the initial phase, covering a minimum of 20 SMEs from each district in Sri Lanka, according to Kumarasiri.
[caption id="attachment_109744" align="alignleft" width="392"] CA SME Task Force Chairman Lakshman Abeysekera speaking to the guests[/caption]
The mentors for the project will comprise of CA Sri Lanka members, CBA members, and aspiring members following the corporate and strategic level examinations from the CA Fraternity, who possess in-depth understanding and experience in business operations.
Kumarasiri stated that the institution also recently entered into a Memorandum of Understanding (MoU) with SDB to provide SMEs with better access to finance and essential busines
s acumen for their long-term success. The agreement plans to pave the way for SMEs to continue to be an integral part of Sri Lanka’s future journey while continuing to be an important pillar in adding value to the socioeconomic development of the country.
Speaking on the initiative, Confederation of Micro, Small, and Medium Industries (COSMI) Founder President Nawaz Rajabdeen stated that this was a very good move as it helps the local SME sector move towards a more positive future. He explained that the local micro, small, and medium enterprises (MSMEs) sector needs the support of such institutions as the sector is considered the backbone of the economy.
[caption id="attachment_109743" align="alignleft" width="389"] SDB CEO Thilak Piyadigama delivering his speech[/caption]
“We need the help of these professionals now more than ever. For example, post Covid, we have around 3,500 women entrepreneurs who have registered with us, and these entrepreneurs are starting to market their products and services, so we need people who know now to navigate through such issues.”
Rajabdeen stated that the current local SME sector is facing various issues, with the top one being that there is no money available for research and development in the budget. He explained that since Covid began, the local banks have been given Rs. 50 million to help SMEs. However, many of the regional SMEs have no access to these funds as the banks have no physical presence in their areas.
He also pointed out that there are currently 1.8 million registered MSMEs, and an estimated 800,000 more in the informal sector; therefore, these businesses need the help of programmes, such as CA Sri Lanka's mentorship programme, to help them grow and to better help the country's economy.