Regional and bilateral trade agreements need to pave the way for SMEs to be meaningfully integrated with global value chains, Asela De Livera, newly appointed President of the National Chamber of Commerce of Sri Lanka (NCCSL) told the 60th AGM of the National Chamber of Commerce held on Tuesday in Colombo.
To ensure SMEs are well connected with global markets, the authorities have to introduce and maintain SME friendly policies, these policies should focus on encouraging innovation, increasing competitiveness, providing cheaper access to inputs, lessening red tape and reducing tariff and nontariff barriers through preferential trade agreements etc.
The Chambers, together with government development agencies and financial institutions must have a common development strategy for micro, small and medium entrepreneurs, he said.
“We should continue to encourage entrepreneurship in this country,” he insisted.
The NCCSL boss also said the larger established companies in this country should encourage the local SME’s by handing over sub contract work to local entrepreneurs or by purchasing semi-finished items. These larger companies should not only purchase from SME’s but also provide them the knowhow on how to maintain quality in production methods. “I am sure if given this chance our own SME’s can remodel their production methods and quality to international standards,” he said.
De Livera said the shortages of skilled labour across all industries continued to be a hindrance in manufacturing and services in Sri Lanka. It is essential that the government provides policies addressing the much-required skilled workforce for the industries. It is vital for Sri Lanka to have policies to increase skilled labour availability directed towards export related industries. To develop investment the government should encourage a favourable and steady exchange rate, a skilled labour force, provide physical infrastructure such as availability of electrical power and good logistics, uphold, strong macroeconomic conditions and maintain political stability. These are considered some of the key decision making factors for FDIs, De Livera said.
He said food and security in crops is very important to Sri Lanka. The country needs to value add to its agricultural products and find markets for newly developed products.
“Unfortunately 50 to 60% of the production is lost due to unavailability of proper storage, cold rooms and proper transport facilities. Even now there will be a bumper rice harvest the next few months. Are we ready with storage facilities? These can help the farmers to sell directly without going through middlemen,” he said. De Livera said the National chamber was seriously considering organizing an agricultural exhibition every year to promote agriculture, find domestic and foreign markets, and educate farmers in modern methods of agriculture.
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