Strengthening biz links of Eastern and Central SMEs

GIZ and Ceylon Chamber initiative:

High regional disparity in economic development has been a common characteristic in the Sri Lankan economy for a long period. The long drawn internal conflict further aggravated the situation and the businesses in the North and East have been operating in isolation for nearly three decades.

Though regional disparities have slightly reduced during the post-war period, the businesses in the North and the East, particularly SMEs are still at a disadvantageous position in terms of technical know-how, access to technology, access to markets and new business opportunities compared to their southern counterparts.

Identifying this shortcoming, GIZ SME Development Program partnered with the Ceylon Chamber of Commerce (CCC) to organize the first SME Exchange/Link Programme between Southern and Northern SMEs in September last year in Matara titled 'SME ProLink;Unity Through Business'. The first SME ProLink program re-established links between the established SMEs in the South with the SMEs in the North and resulted in a number of mutually beneficial business links among SMEs in the North and the South.

Gnanachandran, the owner of Sivan Products in Kilinochchi met Wijeya Kumara, a producer of Kithul-based products in Akuressa for the first time during the ProLink program in Matara last year and they have gone beyond establishing market links between the two regions. In April this year, Gnanachandran invited Wijeya Kumara and family from Matara to join him and his family in Kilinochchi for the Tamil New Year. "They invited us to Matara in May for Vesak celebrations," he said.

"I had only heard of Matara, but because of the ProLink program I got to see it and even made friends there," Gnanachandran said. During the last trip to Kilinochchi, Wijeya Kumara who made a profit of Rs. 40,000 selling spices, donated Rs. 30,000 to renovate a Hindu temple in Kilinochchi.

"Helping Gnanachandran was a unique experience. He is now like a brother to me," Wijeya Kumara said.

Satisfied with the impact of previous ProLink, GIZ and CCC have teamed up again to organize the second 'SME ProLink: Unity Through Business' Programme in Trincomalee, which would provide opportunities to the participating SMEs and the stakeholders of the Food and Beverage (and related) sector to enhance their social links, expand business contacts and strengthen skills and capacities.

ProLink is designed for Small and Medium scale F&B entrepreneurs and associated stakeholders, who have been in operation for at least two years, with a minimum turnover of Rs. 3 million per annum and the interest and capacity to supply other regions.

The Sri Lankan-German SME Development Program, implemented by GIZ in cooperation with Ministry of Finance, Sri Lanka, aims to support a cohesive policy framework enabling SMEs to grow in an inclusive and eco-friendly manner. Through wide technical assistance, it helps enhance competitiveness of SMEs through technology transfer, innovation and improved access to finance. The programme is funded by the Federal Ministry for Economic Cooperation and Development (BMZ) of Germany.

In keeping with the tag-line of the GIZ SME Development program 'Advise on and facilitate matchmaking between technology and innovation providers and SMEs', the SME ProLink program concept supports the SME sector with the participation of various stakeholders. Business and social links amongst the participating SMEs and service providers are expected to be strengthened through this concept.

The Ceylon Chamber of Commerce is the premier business chamber in Sri Lanka which facilitates and contributes towards the development of the private sector businesses in Sri Lanka. The Chamber, with its long service of 175 years, also functions as a moderator between the government and the private sector in policymaking and voicing the concerns of the private sector.

[Second program in Trincomalee]

The second SME ProLink 2016, designed as a two-day residential SME exchange/link program will be held from August 9 to 11 at the Green Park Hotel in Trincomalee.

The program will consist of technical and knowledge sharing sessions on relevant topics for the development of the sector, promoting links between F & B sector SMEs and corporate businesses. There will also be field visits to a food processing factory that have specific learning points and cultural events to promote social and cultural links.

Through this program, the project will ensure that thirty SMEs each from the Central and the Eastern Provinces, along with technical service providers such as Sri Lanka Standards Institute (SLSI), Industrial Technology Institute (ITI), Department of Food Science and Technology of the University of Peradeniya and large-scale corporates will meet at one venue to share knowledge and experiences and set up mutually beneficial links. Guests from the host province and GIZ will also be present.

The District Chambers of Commerce in Ampara, Batticaloa, Trincomalee, Kandy, Matale and Nuwara Eliya districts will facilitate the participation of SMEs from the respective districts.

SMEs in the F&B sector operating in these districts can forward applications for participation in the Program through the District Chambers in the respective districts.

The organizers will select the most suitable SMEs for participation in the programme based on a set of transparent selection criteria. The expenses of the entire SME link program including cost of travelling, accommodation and meals will be met by the organizers.