Hinhalagoda lekamalage pulsi kavindya sandeepani ariyarathna

Opportunities 
The Ministry of Enterprise Development, Industrial Policy, and Investment Promotion 
established the Business Association of Sri Lanka and members of Chambers and Industry in 
2002 to create a platform for SME development.The team's objective was to produce SMEs 
that were all-around focused through an enterprising society that prioritized reasonable 
development.The following are the four main components recoammended in the white paper. 
1 Establishing a SME Authority (SMEA) 
2 Reform existing institutions 
3 Inter-institutional coordination
According to the white paper, the SMEA should serve as a point of convergence for 
institutional assistance, and it should be in charge of utilizing current, medium-term, and long-
term procedures for SME expansion.SMEA should be a self-governing body that acts as a one-
stop shop for SMEs, organizing and encouraging authorization, enrollment, and data 
transmission. 
Threats 
The high interest rates on lending by commercial banks what's more, insurance issues 
have been referred to as primary issues looked by the SMEs. The Task Force likewise has 
suggested giving area and structures on rent or rental premise from the administration, urging 
private industrialists to utilize modern domains which are given normal administrations by the 
state. Survey the Loan Recoveries Act and to convey a system friendlier to the SMEs in 
budgetary troubles is likewise prescribed. 
2.3. Overview of the Research part 
According to preliminary estimates, Sri Lankan SMEs account for more than 70% of 
the country's overall manufacturing establishments.The research demonstrates that SMEs are 
critical to the economic and well-being of the country.The textile and apparel industry has the 
highest concentration of SMEs in terms of numbers, followed by food and drinks. Despite these 
government measures, Sri Lankan SMEs confront numerous local and international problems 
that threaten their resilience and competitiveness.After identifying some of the issues that SMEs 
face in Sri Lanka, the author would like to suggest some methods that the government and 
agencies responsible for SMEs, as well as SMEs themselves, should implement.The 

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government should take the lead in informing SMEs about the advantages available to them 
and how to take advantage of them.These incentives should be provided by a body that 
genuinely cares about the country's SMEs' success and long-term viability.SMEs in Sri Lanka, 
on the other hand, should not rely solely on government agencies. They should try to forge their 
own path forward by relying on techniques that allow them to extend their customer base, reach 
new markets, and raise income. 
To boost their competitiveness, SMEs should always invest in market research, R&D, 
and innovation.They will be better able to comprehend the market's demands and wants if they 
engage in market intelligence.This insight will help them provide higher value to their clients, 
surpassing what their competitors can offer.As a result, customer retention will improve.As a 
result, SMEs should take advantage of the benefits of being small by implementing a 
relationship marketing approach.Because SMEs have a smaller consumer base, they are better 
suited to long-term customer relationships.They can create client loyalty and lower operational 
costs by establishing long-term connections with customers. 
SME reforms should reflect these objectives, as the ultimate goal of SMEs should be to 
grow into huge firms that compete on a global scale.Band-aid solutions that focus on specific 
barriers to growth without considering the wider picture will not be able to create the robust 
entrepreneurship ecosystem that Sri Lanka need if it is to achieve high income status. The 
economy can no longer reliant on foreign foreign borrowing to assist economic growth and 
development, having just achieved upper middle-income status.As a result, if the country wants 
to remain competitive on the global stage, it must enhance production and grow export 
quantities. Sri Lanka must commit to implementing the National Export Strategy in its entirety 
and streamlining transparent regulatory systems.