{"id":29743,"date":"2014-05-14T10:11:14","date_gmt":"2014-05-14T14:11:14","guid":{"rendered":"http:\/\/dbsjeyaraj.com\/dbsj\/?p=29743"},"modified":"2014-05-14T10:14:03","modified_gmt":"2014-05-14T14:14:03","slug":"central-bank-governor-ajith-nivard-cabraal-praises-growth-of-small-and-medium-enterprises-sector-in-the-north","status":"publish","type":"post","link":"https:\/\/dbsjeyaraj.com\/dbsj\/?p=29743","title":{"rendered":"Central Bank Governor Ajith Nivard Cabraal Praises Growth of Small and Medium Enterprises Sector in the North During Visit."},"content":{"rendered":"

By<\/p>\n

Marianne David<\/strong><\/p>\n

The north of Sri Lanka is no longer a lagging province and is taking the leadership role in creating growth in the SME sector and in many areas, asserted Central Bank of Sri Lanka Governor Ajith Nivard Cabraal.<\/p>\n

\"Central<\/a>

Central Bank Governor Ajith Nivard Cabraal in conversation with the owner of Kishani Metal & Aluminium Industries M. Sudakaran<\/p><\/div>\n

\u201cIt is very satisfying to see the marked transformation of the north over the last five years. Massive development has taken place. A lot has been achieved but there is a lot more to be done to realise the potential of the north,\u201d he said, delivering the keynote address as Chief Guest at the \u2018Promoting SMEs for the Development of the Northern Province\u2019 program.
\n
\nOrganised by the Central Bank\u2019s Northern Provincial Office at the HNB Auditorium in Jaffna on 9 May, the program explored the potential for innovation and value addition from SMEs and also looked at managing banking relationships and the Central Bank\u2019s credit schemes.<\/p>\n

Banks have to change their attitudes<\/strong><\/p>\n

Asserting that the SME sector is the backbone of the economy in any country and that it is no different in Sri Lanka, Cabraal emphasised that banks, including the Central Bank, have a great role to play in supporting people\u2019s innovative ideas so that they can continue to find ways and means of economic activity.<\/p>\n

\u201cThe banks have to change their attitudes if SMEs are to succeed. Banks must not think that the SME sector is only about agriculture. They must support agriculture, but at the same time they must support new industries, new enterprises and new skills that are needed by society. Banks also must find the ways and means of providing the capital as well as loans to enable people to do their business,\u201d he said.<\/p>\n

Outlining Central Bank steps to promote the SME sector, he said the bank had changed its attitude and adopted a regional development focus. \u201cEvery day we are searching for new ways in which we can provide the necessary capital for businesses to run effectively. The Government has supported the SME sector and wishes to ensure that the SME sector in all parts of the country is supported very significantly,\u201d he affirmed.<\/p>\n

\"Central<\/a>

Central Bank Governor Ajith Nivard Cabraal observes the mixture production process at Alpha Mixture Industries<\/p><\/div>\n

Pointing out that the bank has made a lot of investments in many areas to make it easier for people to do business, Cabraal said restoration of electricity, doing up of roads, ensuring there are banks and finance companies, and ensuring schools and other Government services are developed were part and parcel of improving infrastructure.<\/p>\n

\u201cWe have invested $ 3.5 billion to ensure the infrastructure is of a certain standard to support SME development. That benefit can only be enjoyed if the SME sector grows rapidly in the next few years. We invite SMEs to make use of these facilities and capital opportunities in order to do their businesses at a much wider level than before.\u201d<\/p>\n

Concluding his address, Cabraal asserted: \u201cA lot has been achieved; several new businesses have started. But we must all realise there is a lot more to be done.\u201d<\/p>\n

Skills development<\/strong><\/p>\n

Central Bank Assistant Governor Janaki Mampitiya, who also participated in the program, told the Daily FT that the Central Bank\u2019s north and east offices, while uplifting the community\u2019s financial literacy, were also placing a lot of emphasis on skills development.<\/p>\n

\u201cThe Central Bank offices conduct programs to uplift skills of the SME sector so that they will be in a position to identify industries or enterprises where they could invest money and start SMEs. This is very essential. We have many programs on financial literacy and we feel we have uplifted the knowledge of most potential SME entrepreneurs to a certain standard. We are now also concentrating on developing skills in modern agriculture, dairy farming and other areas through these skills development programs for SMEs,\u201d she added<\/p>\n

Blessed with biodiversity<\/strong><\/p>\n

University of Jaffna Department of Agricultural Biology Head Prof. G. Mikunthan making a presentation titled \u2018Potentials for Innovations and Value Additions from SMEs in Northern Province,\u2019 said that the Northern Province had many resources, ranging from land (crop and livestock) and water (inland and sea) to biodiversity (flora and fauna), forest cover and energy (solar, wind, bio).<\/p>\n

Asserting that the north was blessed with biodiversity, he listed the dominantly-grown palmyrah, cultivable land, water bodies for inland fishing and being surrounded on three sides by the sea for sea fishing. Prof. Mikunthan also highlighted the potential for extraction of ground water and the proposed forest, wildlife, coastal and marine conservation areas, in addition to listing out the province\u2019s mineral resources<\/p>\n

The north\u2019s human resources comprise school-leavers, diaspora (for investment technology and experience), women heading families, graduates seeking employment, ex-combatants and the physically challenged.<\/p>\n

Touching on micro enterprises that help improve livelihoods, he stated the Women\u2019s Rural Development Society (WRDS) was a success story, with capital given to WRDS creating interest to obtain a loan and repay promptly.<\/p>\n

\u201cThe loan is used to develop a micro enterprise and prompt repayment encourages them to obtain a bigger amount as loans. This promotes expansion of the business and there is trust, confidence and team work.\u201d<\/p>\n

Empowering women\u2019s societies provides employment opportunities and financial control and results in evolving women leaders in the province. Citing an example, he said the Treasurer of Kilinochchi WRDS is an ex-combatant who is doing a great job.<\/p>\n

Innovation and value addition<\/strong><\/p>\n

Prof. Mikunthan listed out and discussed the following aspects for innovation and value addition:
\n Flora:<\/strong><\/p>\n

-Under-exploitation of palmyrah
\n-Under-exploitation of medicinal plants
\n-Potential for floriculture industry
\n-Opportunity for healthy food industry
\n-Potential for bio-fertiliser and bio-pesticides industries
\n-Potential for underexploited plants<\/em><\/p>\n

Fauna:<\/strong><\/p>\n

-Under-exploitation of livestock
\n-Potential for inland fishing
\n-Under-exploitation of deep sea fishing
\n-Potential for bee-keeping and other ventures
\n-Potential for bio-control agents \u2013 predators and parasites
\n<\/em><\/p>\n

Other potential areas are eco-tourism, which will provide employment opportunities, efficient use of natural resources and promote the environment; new products of international standards; and waste management \u2013 vermiculture and vermitechnology.<\/p>\n

Education and technology<\/strong><\/p>\n

In relation to education, Prof. Mikunthan said innovation and value additions were needed in terms of essential skills, hands-on experience, exposure to the industrial world and provision of follow-up training.<\/p>\n

He asserted the introduction of technology in the A\/L stream was the right decision as it would result in school-leavers and graduates being technologically-tuned, receive exposure to industrial operations, give them confidence towards private jobs, encourage self-employment and create productive young entrepreneurs.
\nProf. Mikunthan also discussed pest emergence, climate change and plant protection; alternate food production \u2013 dairy products, apiculture, fruit production, crop-livestock integration, GM crops, GM foods, GM organism in terms of medicinal drugs and bio-safety; renewable energy \u2013 innovations awaited on low-cost solar panels for households; and post-harvest technology.<\/p>\n

In relation to post-harvest technology, there is a lack of low-cost technology development, limited development of cottage industries, limited technologies to process agriculture into new products, certification of standard for value-added products, improper methods for ripening fruits, inadequate dissemination of knowledge, limited availability of value addition techniques, and inadequate knowledge on handling post-harvest losses during collection, handling and transportation.<\/p>\n

Be inventors and innovators<\/strong><\/p>\n

\u201cTechnology should evolve from this island and rise to the top of the world. The appropriate technology should be best-suited and user friendly, cost-effective, environmentally-friendly, less labour intensive and of national and international standards. We should be inventors and innovators rather than simply users,\u201d Prof. Mikunthan asserted.<\/p>\n

\"Central<\/a>

Central Bank Governor Ajith Nivard Cabraal delivering the keynote<\/p><\/div>\n

Pointing out that potential innovations are necessary at this stage to uplift the economy of the Northern Province and to improve the livelihood of the people, he said the youth should be triggered with technology to invent new ideas, tools and machinery to support the industrial revolution. \u201cNewer technologies should be taught and practiced by the youth to develop inventions and innovations.\u201d<\/p>\n

Prof. Mikunthan noted that value additions would help increase Northern Province GDP and also increase exports to international markets. \u201cSelf-employment should be encouraged through supporting SMEs. The WRDS system of financial operation in terms of capital loan could be worked out in all areas for microfinance to encourage small-scale businesses.\u201d<\/p>\n

The program also included a presentation on \u2018Managing Banking Relationships\u2019 by DFCC Bank Regional Manager S. Raveendra and a presentation on \u2018CBSL Credit Schemes\u2019 by Central Bank of Sri Lanka Regional Development Department Assistant Director M.M. Theseem.<\/p>\n

********************************************<\/strong><\/em><\/p>\n

Access to investment in North and East has “Certainly Improved”over the Years – Cabraal<\/strong><\/p>\n

Access to investment in the north and east has \u201ccertainly improved\u201d over the years, Central Bank of Sri Lanka Governor Ajith Nivard Cabraal told the Daily FT, adding that the low interest rates encourage entrepreneurs.<\/p>\n

\"A<\/a>

A section of the audience<\/p><\/div>\n

Cabraal noted that a key problem a few years ago was that the business plans presented to the banks were not viable. \u201cDespite credit lines being available, the people needed to be educated about having proper business plans before getting loans from banks,\u201d he said.<\/p>\n

In order to tackle this, he said at present the Central Bank and other banks have established centres providing information to entrepreneurs on how to do a business plan, how to run a business and so on and give them guidance.<\/p>\n

Commenting on the focus on deposit taking and pawning vs. lending, the Central Bank Governor said it has not diminished, but lending has certainly grown from five years ago.<\/p>\n

\u201cI would say lending has grown by around 150%. There has been progress and I am happy about it but I am still not satisfied since there is more to be done,\u201d he added.<\/p>\n

**************************<\/em><\/strong><\/p>\n

Small and Medium Enterprises Success Stories in Jaffna.<\/strong><\/p>\n


\n1. Alpha Mixture Industries<\/strong>
\nAlpha Mixture Industries, Manipay, Jaffna
\nNumber of employees: 30<\/p>\n

Alpha Mixture Industries is the most prominent mixture producer in Jaffna. It supplies more than 75% of the market in Jaffna District and also exports products to foreign consumers, mostly those who have migrated from Sri Lanka. Alpha Mixture Industries produces a variety of food items, including mixture, peanut pakoda, pakoda, fried peanut, garlic murukku and other fried grain items.<\/p>\n


\n2. Kishani Metal & Aluminium Industries<\/strong>
\nKishani Metal & Aluminium Industries, Araly South, Jaffna
\nNumber of employees: 27
\nKishani Metal & Aluminium Industries produces aluminium sheet and aluminium base products such as pans, pittu pans, idly pan sets, steamer sets, etc. to meet the demand for aluminium products in the Northern Province and also in other areas of the country.<\/p>\n

COURTESY: DailyFT<\/em><\/p>\n

Tweet<\/a><\/div>","protected":false},"excerpt":{"rendered":"

By Marianne David The north of Sri Lanka is no longer a lagging province and is taking the leadership role in creating growth in the SME sector and in many areas, asserted Central Bank of Sri Lanka Governor Ajith Nivard Cabraal. \u201cIt is very satisfying to see the marked transformation of the north over the …<\/p>\n

Continue reading ‘Central Bank Governor Ajith Nivard Cabraal Praises Growth of Small and Medium Enterprises Sector in the North During Visit.’ »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[12],"tags":[],"_links":{"self":[{"href":"https:\/\/dbsjeyaraj.com\/dbsj\/index.php?rest_route=\/wp\/v2\/posts\/29743"}],"collection":[{"href":"https:\/\/dbsjeyaraj.com\/dbsj\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dbsjeyaraj.com\/dbsj\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dbsjeyaraj.com\/dbsj\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dbsjeyaraj.com\/dbsj\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=29743"}],"version-history":[{"count":12,"href":"https:\/\/dbsjeyaraj.com\/dbsj\/index.php?rest_route=\/wp\/v2\/posts\/29743\/revisions"}],"predecessor-version":[{"id":29783,"href":"https:\/\/dbsjeyaraj.com\/dbsj\/index.php?rest_route=\/wp\/v2\/posts\/29743\/revisions\/29783"}],"wp:attachment":[{"href":"https:\/\/dbsjeyaraj.com\/dbsj\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=29743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dbsjeyaraj.com\/dbsj\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=29743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dbsjeyaraj.com\/dbsj\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=29743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}