Small and Medium Enterprise Developers by ncy98006


									          Small and

Divisional Report

1        Small and Medium Enterprise Developers

       1.1 Introduction/Background
           Project SMED has been established in collaboration between the Friedrich -
           Naumann-Foundation (FNF) and the Federation of Chambers of Commerce and
           Industry of Sri Lanka (FCCISL).

          Its objectives

         a.     To offer support services to the Small and Medium Enterprises of Sri Lanka in
                order to increase their competitiveness and enable them to use the
                opportunities offered by the market economy and the globalization process.
         b.     To strengthen the chamber movement in Sri Lanka by increasing the
                membership of FCCISL and its constituent chambers, by supporting FCCISL
                in its tasks of formulation entrepreneurs on issues of economic policy
                liberalization and on the role of the chambers in a market economy.

1.2.     Vision, Mission and Goals of SMED

         1.2.1. Vision
         SMED will be a Centre of Excellence as a Business Development Service (BDS)
         provider to Sri Lankan Business Community.

         1.2.2. Mission
         To promote and foster business enterprises to be competitive, socially responsible
         and environment friendly by providing demand driven effective and high standard,
         professional services to achieve sustainable growth and development.

         1.2.3. Goals
                        o   Extension of service coverage Island wide.
                        o   Achieve financial self-sufficiency & sustainability.
                        o   Expand the range of activities through R&D (Demand Survey).
                        o   Enhance organizational productivity and quality of services.
                        o   Endeavour for total employee satisfaction.
                        o   Build up image and goodwill as a Centre of Excellence.
                        o   To promote strong and healthy public - private partnership (PPP).
                        o   Contribute to overall sustainable economic growth of the country.

1.3 Challenge and Opportunity

A challenge of business competition in today’s globalized, knowledge based economy is
meeting the discrete demands of numerous client segments, not by supplying just goods and
services but by providing to the clients solutions developed from proper blends of product
utilities, supporting services, and timely deliveries. The business cutting edge has changed,
from mass production with size-and scale as permanent competitive advantage to lean
production with client responsiveness, speed, and constant reinvention of advantages.
In this environment, businesses with small organizations have no less competing opportunity
than those larger the opportunity to develop niche, innovation, networking, and sound
management. SMED’s task is to assist them developing their full competitive capability.

1.4 Strategy

SMED services are client based. It stratifies SMEs into four development stages: potential
and emerging entrepreneurs, the existing SMEs afflicted by the economic crisis, those with
fair sustainability, and those with high competitiveness. Its services are customized to meet
the different needs of SMEs at each stage. The services also take into account sizes of
SME’s organizations, business areas (production, agribusiness, technology transfer, trading,
service, consultancies etc.) and attending persons (executives, employees, business
successors, etc.). The services have to be effective, time-affordable, and economical for
SMEs of each target group.

To assure quality service, SMED comprehensively monitors and evaluates the services on
inputs, processes,, outputs, and outcomes. By “hand-holding” SMEs, it tracks the individual
and responds to changing parameters.

2.      SMED services and programs

PROJECT SMED goes through restructured phase during the year 2008 based on more
than 18 years experience and responding to modern day SME requirement.

SMED needs restructuring terms of services provided areas of priority, costing and

2.1 Management Services /       Consultancies

2.1.1   Consultancy on Forming of omnibus companies

        Back ground and objectives of NTC:

         The Bus Industry in Sri Lanka is nearly 101 years old. Since the individual bus
         owners firstly put their own busses to routes, some times there were monopolies
         which created many problems. Therefore in 1957 the prevailed government
         nationalized the Bus companies in Sri Lanka. Even though some of the Bus
         companies were operating at fairly good level, the whole industry was fully
         nationalized in the year of 1958. By the year of 1978 it was again noted that this
         industry is well lead by the private sector any way.
         Therefore further amendments were done in the year 1998 and it was suggested to
         issue route permits to people who operated and owned more buses for more than
         five years period. Therefore the National Transport Commission NTC was setup to
         form companies and proceed ahead to meet intended objectives.

         NTC is mandated to regulate public omni bus transport service in Sri Lanka. It is
         empowered to formulate national policy for the government to improve the bus
         service by issuing route permits and other important issues for the bus owners to
         function satisfactorily.

     The Small and Medium Enterprises Developers was assigned for consultancies on

  o   Conducting of Awareness Progrmmes with regard to the formation of Omnibus
  o   Strategy for Formation of Omnibus Companies, Registration and Implementation as
      per the requirements of NTC.
  o   Human Resource Development / Capacity Building of bus company staff and

2.1.2 Conducting      Feasibility Study for      Coaching and Training for GTZ project

      The overall objective of the survey is to find the current states of Income Generated
      activities of the GTZ partners and prepare a methodology for coaching and training to
      promote those business activities for sustainability.

      The concept of the SIG activities is to improve the economic situation of livelihoods in
      selected regions of the conflict and Tsunami affected districts in Apmara , Batticloa,
      Trincomalee and Vavuniya.
      FCCISL have conducted several capacity building programs for the partners of GTZ
      supported projects. The main activity of this survey to find the

      The major income generation activities identified by the GTZ project are currently
      operating in above district without proper business coaching. Therefore, before
      starting appropriate coaching methodology it is important to know about the current
      states of the GTZ project partners’ potentials in developing those businesses such as
      working according to business plans, achieving targets in businesses, business
      registrations, coordinating with relevant organizations, technology support access to
      service providers, and present market linkages and etc. The information is necessary
      to streamline coaching programmes for GTZ partners to improve their income
      generated activities.

      Areas to be covered by this survey are,
         Identifying required support to develop the entrepreneur skills.
         technology requirements to develop their activities
         Present market linkages
         Coordinating among relevant business service providers

2.2 Training and Skill Development Workshops

2.2.1    “How to Cost Training Courses” – GTZ REVO
         Technical education department with help of GTZ supported REVO project invited to
         conduct 2 days training program for Technical college teachers on How to Cost
         Training Courses “Program

2.3 Enterprise Development and Management Services

2.3.1        Capacity Building of Partners of GTZ supported projects

   August 2007 GTZ Rehabilitation of Economic Physical and Social Infrastructure Project
   (REPSI) contacted SMED to conduct Capacity Development of GTZ project Partners.

 It was to develop seventy five MSMEs in each district and it was planned to trained 20
 Entrepreneur Facilitators for each district.

 Geographical Coverage, The Phase 1 limited to the districts of Vavunia, Batticoloa and

 Components of the Project Based on the discussions held in the past with GTZ officials,
 the project had the following components completed;

        A)    Advocacy and Lobbying
        B)    Capacity Building Training
        C)    Monitoring and Evaluation
        D)    Overall Administration

 A) Advocacy and Lobbying

 Back up a with an island-wide institutional network through its own district and regional
 chambers and several on-going development programs in the North and the East, FCCISL
 is well placed in creating an environment suited to implement the proposed project.

 B) Capacity Building Training

 Identified fields of training to be conducted by FCCISL will be as follows:

        1.    Sensitizing Session – for the Core Group (details below)
        2.    Administration – advanced and general program
        3.    Value Chain development
        4.    Entrepreneurship development/project development

 1. Sensitizing Session:

 It was recognized that a sensitizing session to start with targeting key contacts in the
 respective districts and stakeholders will be a key in this whole exercise. The target group
 (Core Group) comprised of District Secretaries/GAs, Additional GAs, Ministry Secretaries
 (Ministry of Nation Building), CEOs of respective district chambers, GTZ and FCCISL as
 the host and the project implementing agency. This was a 2-day session held at Dambulla.

The broad objectives of this session was:

   a) To ensure core groups’ acceptance and commitment for the Action Plan
   b) Advise on implementation strategy
   c) Guidance to select participants and establish contacts at all the levels

This was an interactive session chaired and moderated by a prominent retired civil servant
who has held top state positions covering North and East too. There were few more
resource persons to share expert views.

2. Administration – an advanced and a general program

The advance program consisted of admin/management aspects (3 days) and more
importantly an ‘Appreciation Session’ on Value Chain Development and Entrepreneurship
development/project development (2 days) as because the bureaucrats should be aware
of the focus of the program.
This was useful at the monitoring stage. The General Admin program included
admin/management aspects focusing on leadership development etc.

3. Value Chain development

This will be the second round of training targeting a combined group representing the
levels of 3, 4 & 5 held at neutral locations for 5 days. We will use one single panel for the

4. Entrepreneurship development/project development

This was the third round of training targeting the same group. The group consisted of
mainly divisional and village-level state employees, CBOs, Co-Ops and a few NGOs and
not the potential or existing entrepreneurs. The general entrepreneurship development
training for a group of this nature made a little impact as far as delivery is concerned. It
was suggested conducting Training ofTrainers (ToT) program expanding to five days.

The training was conducted for two levels.

Level 1    Gov. Agents ,Heads of district department

 Level 2                 Program assistance of district office and Leaders of community based

 This Program included 16 workshops and each 5 days residential work shop .Program
 continued till Year 2008 ,. Workshop were conducted under following subjects

      Year 2008 (January to May) 5days 08 workshops were conducted

      •       Client GTZ was quite satisfied of the project
      •       Each district participation 17 -20 participants forwarded 275 actual enterprisers
              Business plans to develop businesses in the region
      •       Participants get knowledge to help as facilitates to any entrepreneur prpring business
              plan at there district

 2.3.2         Conflict Affected Entrepreneurs

 Program with Special project unite for conflict affected entrepreneurs “Entrepreneurship
 and Business Management. The participant indent by relevant district chambers and
 intrudes to FCCISL special project to develop their business. Special project unit has
 given to planning and implement this project to SMED.

 07 Programs were conducted in (Ampara,Kalmunai ,Batticalo,Trcomalee,Vavuniya

          •    250 affected entrepreneurs participated
          •    Participant develop business plan for there business.

2.4            Market Linkage Development Seminars

2.4.1            Production and Supply Chain Management (Vauniya, Pothuwil, Batticalo)

Project SMED of FCCISL having the mandate in developing Micro, Small and Medium
Enterprises proposed that the partners of GTZ trained during Phase 1 are further given a
coaching training on facilitation skills to build linkages between Micro, Small and Medium
Enterprises and Service providers in their locations and establish the District Micro
Enterprise Network (DMEN) locally through Public Private Partnership to support the newly
established Enterprises for long term sustainability.

Therefore, 20 Entrepreneur Facilitators for each district on value chain development
methods were trained to use as a tool to develop MSMEs in their locations. The target was
to develop seventy five MSMEs in each district Vauniya, Pothuwil, and Batticalo

2.5 Energy and Environment

2.5.1   Energy Audit

SMED is now undertaking Energy Audits that lower the energy cost without sacrificing
occupational comfort,

As per the requirements of the clients and based on the capacity and the type SMED
conducts audits in two folds. They are;
   • Walk through audits:
   • Complete energy audits

Due to the increasing of prices of the electricity and in response to an advertisement done by
Small and Medium Enterprise Developers following Walkthrough Energy Audit were
conducted during a last 3 months of 2008.

           o   Aktari Traders (Pvt) Ltd
           o   Hayleys Group
           o   SJMS Associates
           o   Star Garments Limited.
           o   Vintage Teas Ceylon (Private) Limited

Energy Audit – Article with advertisement (email campaign)

2.5.3      Environmental Awareness Programme for the Regional Chambers
           Affiliated to FCCISL”

Industrial pollution is causing lot of damage to the environment in urban and rural areas and
in an attempt to minimize this impact Federation of Chambers of Commerce and Industry of
Sri Lanka (FCCISL) - SMED Environment and Energy Division teams up with the World
Conservation Union (IUCA) in launching several pollution control awareness programmes.
These programmes are carried out through the Regional Chambers of FCCISL.

This launch includes five pilot projects. They are Agricultural Farm / Seed paddy sector,
Desiccated coconut Industry, Lime Industry, Rice Milling Industry and Fuel pumping Service

In each of these above areas of industries one place is selected to be a model and all the
other industrialists could take it as a model and for them to follow the pollution prevention
methods carried out in the pilot project.

The pilot projects were selected from areas where there are large numbers of units of the
particular industry and also among the Micro, Small and Medium enterprises. They were
representatives of a significant environmental problem in the region.

IUCN funded an environmental audit of the SME selected and IUCN/FCCISL promote the
participant’s work both nationally and internationally and the Central Environmental Authority
provides guidance. The selected industrialist where the pilot project was carried out has
expressed willingness to use his workplace as a demonstration model.

The pilot plants were selected after detailed discussions and an MOU were signed to commit
to the cause and agreed to conduct environmental audits.

   o    A rice mill is selected through Ampara District Chamber;
   o    Fuel Pumping Service Station is selected through Anuradhapura District Chamber;
   o    a lime kiln is selected through Matale District Chamber;
   o    Agricultural Farm /Seed paddy sector a is selected through Polonnaruwa District
        Chamber and Desiccated coconut industry is selected through Wayamba District

Rice milling has been a major sector in the Eastern and North Central Provinces and studies
have shown that there is considerable amount of pollution and waste in this industry. In the
case of Service Stations there is water pollution.
There are large numbers of lime kilns in the Matale District and the surveys have indicated
that most of these kilns are badly designed and cause very high air pollution. The pilot
project will come up with a procedure that will ensure environmentally friendly lime kilns.

Agicultural Farm /Seed paddy sector is a major industry in the Polonnaruwa District and they
appear to be not operated in an environmentally friendly manner causing a threat to hygienic
conditions as well as pollution. The pilot project in the Seed paddy sector is to ensure
environmentally friendly practices that generate benefits to the community.

Wayamba Province is Desiccated coconut industry reputed for industry and the products are
supplied to large multi-national companies. While large coir industrialists are conscious and
adopt environmentally friendly measures many SMEs in the supply chain are far from being
environmentally friendly. The pilot project deals with eliminating the impending
environmental hazards.

2.5.3      Clean Development Mechanism

Net working with the government bodies and the industries in CDM activities to reap the
benefits for the Sri Lankan industries in upgrading their technology for generating CDM

Clean Development Mechanism is an arrangement under Kyoto Protocol allowing
industrialised countries with a greenhouse gas reduction commitment (called Annex-
countries) to invest in projects that reduce emissions in developing countries as an
alternative to more expensive emission reduction in their own countries. Developing
countries are awarded with emission credits on account of their active contribution to
emission reductions and sustainable development. These emission credits can be traded in
the greenhouse gas market.

Realising the great importance of this issue and the need for Environmental protection,
Federation of Indian Chambers of Commerce and Industry (FICCI), with assistance from
Norway, has launched a project for promotion of CDM in India. It is proposed to create
awareness about CDM and conduct feasibility study to assess the CDM potential in SAARC
countries including Sri Lanka. We have already carried out the study in Nepal and Bhutan.

       CDM Discussion on 16th December with Government Officials

       16th December a Meeting with the following Government officials in the area of
       energy, environment, transport, waste, forestry etc.was held

          o   Ministry of Petroleum and Resources
          o   Ministry of Transport
          o   Ministry of Science and Technology
          o   National Transport Commission
          o   Department of Forest
          o   Chief Ministry Western Province
          o   Solid Waste Management
          o   Ministry of Environment & Natural Resource
          o   Ministry of Power & Energy
          o   State Timber Corporation
          o   Ministry of Environment & Natural Resource
          o   Geology Survey and Mines Bureau
          o   Central Environment Authority / Sri Lanka Carbon Fund

       Key Sectors for CDM were discussed.

          •   Hydro, Agriculture, is already in process and Transport, Waste Management,
              Solid Waste, Waste Water and Forestry is to be expanded on CDM
          •   Already working projects and the projects to be started was listed.
          •   Government has allocated Sri Lankan Rupees 100 Mln., for these activities.
          •   To get the approval on a project, if it’s through the Government panel will take
              about two weeks, if the papers are intact.
          •   Sri Lanka Carbon trying to work for the refinery at the moment and to be
          •   Flame volume can be reduced.
          •   Solar Power is also can be an option.
          •   Forestry could be on land availability – normal land to convert to forest land.
          •   Registered CDM Projects were discussed

    Seminar on Clean Development Mechanism and its benefits Open House

    Conducted by Federation of Indian Chambers of Commerce and Industry
    In collaboration with SMED and Sri Lanka Carbon Fund (Private) Limited
    Trans Asia Hotel, Earl’s Court, 17th December 2008

    Topics presented and discussed were

        o   Impact of Climate Change and status of CDM Projects
        o   Overview about Global Warming & Climate Change by
        o   Clean Project Development Mechanism – A Must Know For Developing
        o   Crucial requirements for registration of Clean Development Mechanism
            projects by EB-UNFCCC. Concepts of Baseline & Additionality
        o   Presentation of a the project owner of a registered Clean Development
            Mechanism project in Sri Lanka

        The resource persons were Mr. Karun Sharma, Federation of Indian Chambers of
        Commerce and Industry, Mr. Charu Gupta, Federation on Indian Chambers of
        Commerce and Industry, Mrs. Chandani Panditharatne, Deputy Director, Climate
        Change – Ministry of Environmental and Natural Resource

There was participation of 76 representing potential industries, media and public sector

2.5.4       Management of Plastic, Polythene & Rubber WS

Discussion with Gov. heads of the Central Env. Authority to streamline the policies and
Regulations of plastic industry in Sri Lanka,

The workshop commenced at 9.00 am and the following topics were discussed.

The following were pointed out.

o   Use of polythene has become a part of every day life for the people. The Market
    mechanism drives people to use polythene because its cheap and easily available.
    People go to the market empty-handed and return home with a number of polythene
    bags containing shopping goods.
o   Polythene bags cause blockage in the drainage/sewer system of the cities causing
    water logging, germination of bacterial and water-borne diseases etc. Only one piece
    of polythene bag can block a drain causing water logging, pollution in the drain and
    germination of bacterial and water borne diseases.
o   The Sri Lankan government has begun encouraging plastic waste recycling in an
    effort to prevent the material piling up along the road side and causing environmental
    pollution. Countries like Japan and in Europe you don’t see plastic waste dumped on
    the road side.

o   It is not the problem of plastics, it’s the system of how you manage the post
    Consumer plastics." An Example was given the Malaysian women; they make bags
    for marketing by using waste polythene bags which a sample was given to the

   Mrs. Batuwitage – Ministry of Environment & Natural Resource Why Plastic Management
   is necessary poited out that
       o Huge pressure was given to the Ministry with regard to the same. By this time
          they brought up a new law that the lunch sheets and other polythene wrappers
          and bags below micron 20 will be illegal to use.
       o The people in this trade while thinking of the sustainability of their business
          should also think about the environment and pollution before blaming each other,
          to find out where and what is the solution for this issue. Furthermore she stated
          that this decision was to be taken in 1992, about 16 years back.
       o The question arose from one of the participants “what sort of plans the
          Government has been taken on polythene issue” , in this regard she answered
          that the only solution is to adhere to the new regulations as not to use thin
          polythene ex. Lunch sheets, shopping bags, to produce according to the given
          instructions of the Government to produce polythene products out of over micron
          20. To minimize the solid waste and make maximum use of the local products.

   Mr. Jayanetti - Central Environment Authority pointed out

   o   The polythene manufacturers are strictly to be adhered to manufacture polythene of
       any polythene product of twenty (20) microns or below in thickness.
   o   For the industrial sustainability they should look at the external forces and process.
       The business of the Ministry of Environment is to look at the pollution to the
       environment and then take action and decisions accordingly.
   o   A request from a participant that to advertise in papers not to sell polythene goods
       without an EPL No. and also not to tax more than the customs.
   o   Polythene has harmful effect on soil, water and air. Processing and reprocessing of
       polythene substances cause air pollution. People throw off the lunch sheets with the
       food and some time innocent wild lives also eat these foods with the polythene and
       there are times they loose their lives as well.

   Mr. Nihal Cooray – Cleaner Production presented

   o   Cleaner production opportunities and 3R in plastic industry
   o   CP guiding Philosphy is prevention is better than cure – Minimizing creationof waste
       and pollution and the result improved profitability, competitiveness and better health
       and safety of workers, reduce resource dependency and less pollution
   o   CP aims at Studying your Process in detail and identify waste in the process at every
       step , measure and cost and find why and how the wastes is occurring. Generate
       opportunities to reduce or zeroing the waste.
   o   Who will do it? Everyone in the organization together with the top management
   o   Cost of waste is not only disposal cost, but includes; inefficient energy use cost ,
       purchase cost of wasted raw material lost revenue for what could have been a

Mr. Jagath Deva – NCPC presented the Sri Lankan Cleaner Productions activities.

   o   Project of UNIDO – integrated industrial development support programme under the
       Ministry of Inudstrial Development funded by the Government of Norway.

     o   Vision of National Cleaner Production Centre will strive to be an excellent one-stop
         centre for Cleaner Productions and sustainable consumption and production in the
     o   Mission establish a commercially viable self supporting centre to provide demand
         driven professional services in cleaner production and other related environmental
         issues to industrial and other business enterprises operating in Sri Lanka. National
         Cleaner Production Policy and strategy.

The participants requested follow up activities as this has to be taken up to the policy

2.6 SME Policy, Research and Advocacy - Seminar ,Research study and Publications


The Key Persons Forum is an event organized monthly by the SMED. The objective of this
programme is to provide a platform for public and private sector entrepreneurs.

Lectures and discussions of each forum are conducted by eminent personalities both in the
Public and Private Sector in their relevant fields who share experiences and policy
perspectives on a face to face basis with the Guest Speaker on topics relevant to those who
are interested the SME development. Participation of Key Persons’ Forum both public and
private sector is of a great advantage in this monthly forum as the topics discuss at these
forum are timely and relevant to come up with day today business issues.

1.   Date                        January 10, 2008
     Topic                       ‘Making Public-Private Partnership Meaningful
                                 - Strategy of the Government’

     Guest Speaker               Hon. Karu Jayasuriya,
                                 Minister of Public Administration & Home Affairs

2. Date           February 28, 2008

  Topic           The Economy : Opportunities & Challenges and Outlook for
                  2008 and Beyond.

  Guest Speaker   Prof. A.D.V. de S. Indraratne
                  Sri Lanka Economic Association

3. Date           March 27, 2008

  Topic           Bribery & Corruption : Impact on Business Environment’

  Guest Speaker   Hon. Justice Ameer Ismail
                  Chairman, Bribery Commission

4. Date           May 29, 2008

  Topic           ‘Electricity Tariff and It’s Long Term Impact
                  on Business and Economy’

  Guest Speaker   Mr. Udayasiri Kariyawasam
                  Chairman Ceylon Electricity Board

5. Date            July 01, 2008

  Topic            ‘Govt. Policy on Aviation Industry and Future of
                   Sri Lankan Airlines’

   Guest Speaker   Dr. P.B. Jayasundera,
                   Chairman, Sri Lankan Airlines

6. Date            August 07, 2008

   Topic           Government Strategy for Development of Fisheries
                   Industry in Sri Lanka’

  Guest Speaker    Hon. Felix Perera
                   Minister of Fisheries & Aquatic Resources

7. Date            August 18, 2008
   Topic           ‘Sri Lanka’s Prospects on Securing GSP+
                    - Strategy of the Government’

  Guest Speaker    Hon. Prof. G.L. Peiris
                   Minister of Export Development & International Trade

8. Date                              Sept. 25, 2008
   Topic                             ‘Introducing Environment Regulations
                                      – Impact on Business and General Public’

   Guest Speaker                     Hon. Patali Champika Ranawaka
                                     Minister of Environment & Natural Resources

2.7 Industrial Engineering and Technology Transfer - Workshops and exhibition

2.7.1   SMED Machinery Exhibitions -2008 of FCCISL

                                   The Small & Medium Enterprise Developers (SMED), a
                                   project of the Federation of Chambers of Commerce &
                                   Industry of Sri Lanka (FCCISL) & Friedrich Naumann
                                   Stiftung (FNSt) in collaboration with the Ministry of
                                   Industrial Development associated with the Ministry of
                                   Rural Industries & Self Employment Promotion, Ministry of
Science and technology, Ministry of Investment Promotion & Enterprise Development and
World Association for Small & Medium Enterprises (WASME), organized the SME Machinery
Exhibition for the 3rd consecutive time at the Bandaranayake International Conference Hall
from May 15-18, 2008.

The areas covered in this exhibition are;
          • Machinery
          • Ancillary Equipment
          • Processes
          • Methods and
          • New Technology

The Exhibition on all 4 days got under way at 10.0am in the morning. Visitors from various
parts of the island came to visit the stalls, as some machinery was unique and a creation of
the small entrepreneur. Visitors were comprised of the Sri Lankan business community from
all districts. And regions, overseas buyers/sellers, potential entrepreneurs and general

A series of seminars/Workshops useful for SME representatives and entrepreneurs were
conducted on all 4 days on the following topics.

      Banking assistance for SMEs
      Single pace-Small Rice Mills
      New Food Technology applications for SMEs
      New welding Technology
      Environmental Protection Laws for SMEs
      Energy Efficiency and Profitabiltity in SME businesses
      Greening the SME business for profitability
      Benefits of incorporating quality & Standards for SMEs
      Application of IT for SME profitability
      Technical & Vocational Training available for SME’s

Comments made by the Visitors:-

 -   Organize this type of SME exhibition in regional wise.

 -   Better to advertise this type of Exhibition in various media channels.

 -   Instruct Exhibitors to open the stalls on time and always keep someone
     who is competent to aware the product or service in the stall for the visitors.

 -   Fill-up all stalls with various sectors product & services such as innovative
     machineries and techniques, automobile, SME funding Banking sectors,
     Agriculture, Fisheries, Aquarium etc. Also provide maximum value to the visitors
     because, most of them were wasting their precious time, money etc. due to

        unoccupied stalls.

 -      Arrange this type of Exhibitions periodically and get more visitors especially
        students such as from schools, technical colleges and tertiary institutes etc.
        Also undergraduates, graduates and professionals.

 -    Provide ‘Exhibitors Details’ to all visitors as handouts, leaflets instead of
     ‘Hand Book’. Then, it is much easier to contact these organizations.

 -      Short description of each Stalls and their products & services to be telecasted
        via the Public Address (PA) system, then everybody aware about the stalls.

 -      Gained new product techniques and their marketing capability from the
        ‘Parallel Events’. This was the excellent seminar series which impressed us
         during the exhibition.

2.7.2    “Hands Lanka” 2008 exhibition

                                            The “Hands Lanka” first ever international
                                            handicrafts exhibition was held in Sri Lanka from
                                            October 9 -12, 2008 at the Sri Lanka Exhibition and
                                            Convention Centre (SLECC), Colombo.

                                            This exposition is a joint initiative of Small and
                                            Medium Enterprise Developers (SMED) technical
                                            arm of the Federation of Chambers of Commerce
                                            and Industry of Sri Lanka (FCCISL) the apex
                                            organization of the private sector in Sri Lanka,
                                            Handwerkskammer Koblenz of Germany and
                                            National Chamber of Handicrafts in Sri Lanka
                                            together with the Ministry of Rural Industries and
This annual event is the first joint effort in Sri Lanka where the handicraftsmen and women
could meet buyers and suppliers for their products.

One of the vital arms of the FCCISL is Small and Medium Enterprise Developers (SMED)
which plays an important role in SME development. SMED conducts a range of services and
activities in pursuance of its objectives

Objective was to make an open forum to meet expert craftsmanship of all over the Sri Lanka
with national and international high-end admiring clientele and to open new market
dimensions for local Small and Medium Scale Entrepreneurs (SME)

Exhibit were

Wood Work, Metal Work, Lacquer Work, Mat Weaving & Palm Products, Basketry, Coir
Products, Pottery, Lace Making, Rattan Products, Bamboo Products and Gold & Silver

“Hands Lanka” exhibition provided an opportunity for local and foreign handicraft products
manufacturers to:

   (a) To meet mega-scale National and International Manufacturers
   (b) To meet mega-scale material suppliers
   (c) To meet mega-scale buyers and to get firm orders
   (d) To get to know a wide range of brilliant service providers
   (e) To sell directly own products and strategic methods of production
   (f) To make negotiation and enter into joint venues
   (g) To get to know time-effective and cost-effective new, sophisticated technologies
   (h) To get to know new technologies for efficient large-scale productions

Handicraft craftsman as rural entrepreneurs general have great potential to grow if they are
provided with new technology and innovations to create new gift items and handicrafts and
services using rural resources. It will open up new opportunities to craftsmen to acquire
technical know-how in order to redesign existing products, product diversification, quality
improvement, and cost cutting.

                                         There were 08 number of Parallel Events Seminars
                                         conducted (Free of Charge) during the exhibition for
                                         the public and the exhibitors on the following topics
                                             o Financial      Assistance       available     to
                                                Handicraft Technicians.
                                             o Export Market open to Handicrafts.
                                             o The need for new vision for the Handicraft
                                             o Methods of electroplating gold, silver and
                                                rhodium for the production
                                             o New technology utilized in manufacturing
                                                copper based products.
                                             o Need for producing quality handicrafts.
                                             o Hand driven woven products.
                                             o Exploring new market for Handicrafts.

2.7.3   Fisheries EXPO Sri Lanka 2008

                                             International Fisheries and Aquatic
                                             Resources Exhibition 2008
                                             On 7th November the exhibition was inaugurated
                                             by the Hon. Deputy Minster Neomal Perera ,
                                             Minister of Fisheries & Aquatic Resources to the
It was held from 7th November to 9th November at the Sri Lanka Exhibition and Convention
Centre (SLECC), Colombo.

This exhibition expectation was to provide an insight into the diverse opportunities available
in the fisheries sector for the would-be- investors targeting both domestic and export markets
in Sri Lanka and an awareness of the policies and programmes of the Ministry of Fisheries
and Aquatic Resources and its agencies in promoting sustainable development of fisheries
in Sri Lanka.

The FCCISL with the Regional Chambers and Government can play a major role to support
the SME in Fisheries in realizing the following objectives. This will also improve the Public
Private Partnership to a sustainable economy.

Sections of the Exhibition
   o Aquaculture
   o Services to the Seafood/Fishing Industries
   o Fish and sea products
   o Frozen, enriched and brand products
   o Delicatessen and exotic sea products
   o Equipment for fish processing technologies
   o Refrigerating and freezing equipment for the fishing industry
   o Equipment for storing, transporting and packaging sea products
   o Fleet, professional fishing equipment and instruments for the fishing industry
   o Industrial water cleansing equipment
   o Investment, insurance, quality control and logistics in the fishing industry
   o Complementing products and substances for sea products
   o Boat/Ships Service & Repairs
   o Capacity building Entrepreneurship skills

The project was financial supported by GTZ, ICEIDA and Ministry Of Fisheries and Aquatic
Resources and implementation is being done by Small & Medium Enterprise Developers
(SMED) Project of Federation of Chambers of Commerce & Industry of Sri Lanka (FCCISL)

Parallel Events Seminars

   o   Availability of Modern Technology for the deep sea fishing industry (GPS)
   o   Eco Tourism for generation of self employment and Whale Watching in Sri Lanka.
   o   Investment opportunities in Fisheries Sector.
   o   Development of new hybrids of Fancy Guppies - NAQDA Experience.
   o   Ornamental aquatic plant propagation through tissue culture for generations of self
   o   Availability of dimmersal fish for the domestic market.
   o   Current Regulations & requirements mandatory for export of fishery products to the
       EU & other markets (USA + Japan).
   o   Packaging requirement for transportation of aquarium fish
   o   Health management for the ornamental fish trade.

Comments made by the Exhibitors:-

 -       More Advertising & Promotional campaigns have to be carried out prior and during the
         Exhibition. (Try to promote through the popular ‘Electronic & Print’ media which people
         are highly entertained)

 -       Venue has to be shifted from SLECC to BMICH; due to various reasons such as
         security issues, visitor’s perception, ample parking facilities etc

 -       Arrange this type of exhibition parallel to the events like “Boat Show” etc

 -       Allocate separate area for cooking & preparation inside the Exhibition hall. And, allow selling the

 -       Better publicity in international market through various SL embassies in abroad. And,
         to be listed in world Fisheries annual exhibition itinerary.

 -       Time duration for the exhibition is too long

 -       During the exhibition drop of Air conditioning facility

 -       Have a shuttle service from all star hotels, to bring down the Tourists to the Exhibition

 -       Gained new product techniques and their marketing capability from the ‘Parallel
         Events’. This was the excellent seminar series which impressed us during the

 -       Some of the exhibitors had purchased number of stalls and provide only one feedback
         form. Due to that reason feedback quantity is low

2.8 Publications

     o    Pollution Abatement Book

     o    Key persons’ speeches 2008

     o    Newsletter

     o    New SMED brochure

2.9 Agribusiness Development Seminars, awareness programs

        consultancy service for promotion of 3000 large scale forward sales contract in
        Badulla District Dry Zone Livelihood Support and Partnership Program )
        Ministry of Agriculture Division & Agrarian Services

2.9.1Monaragala Agribusiness development project - Attracted at least 80
     participants for Plant Nursery Management.
   Monaragala Agribusiness development project – Awareness Programme
         • 2007 November completed the awareness including two days hands-on
             training programs. Farmers trained at Gannoruwa Agriculture school .
         • Post harvesting development
         • Found donor agency for provide grants to establish plant nurseries and
             compost manufacturing

   Made a solid recognition and confidence towards agri business development with the
      farmers and SME’s through District chambers.
   Analysis and rectification of the problems and needs of the SME’s and farmers in
      relevant districts.
   create several farmer organizations in relevant districts
   Create the impotency of modern technology thro. awareness lecturers

             •   Composting and eco-friendly drip irrigation systems
             •   Papaw, Beetles, Pineapple, Mango farming with modern technology
             •   Fruits & vegetables preservation
             •   Cattle farm management & implement
             •   Pest controlling
             •   Home gardening
             •   Seed and plant management
             •   Packaging industry

Future Plans of the division for 2009

   o   Technical Workshops (innovative new areas such as Nanotechnology)
   o   Walk through Environment and Energy Audits
   o   Regional chamber seminars
   o   Foreign exposure visits
   o   Management consultancies
   o   Regional programs as per business plans

   o   National Level Agribusiness Development, Energy & Environmental Seminars

   o   Key Person's Forums

   o   Regional seminars on Good Governance for SMEs
   o   Regional seminars on non conflictive interaction
   o   Regional Seminars intellectual property rights

   o   Publication - Handbook intellectual property rights
   o   Publication – Key person’s speeches
   o   Publication - Regional Business Dev. Services for SMEs

   o   SME SUMMIT 2009

   o   SME Machinery Exhibition 2009
   o   HANDS LANKA Exhibition 2009
   o   Fisheries/ Agri / DairyExpo Sri Lanka 2009

   o   Establishing SMED 05 cells RCSL PROJECT


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