Efficient management, success of any enterprise - IDB chairman

By L.S. Ananda WEDAARACHCHI

Kithula, a shop for Kithul jaggery treacle and local food items was opened by Traditional Industries and Small Enterprise Development Minister Douglas Devananda at the Janakala Kendraya in Battaramulla The inaugural meeting of the "Federation of SME industrial Associations" at the Sri Lanka Foundation Institute.

Efficient management is the key to the success of any enterprise, Industrial Development Board (IDB) chairman Udayasri Kariyawasam said.

The IDB setup in 1966, under the State Industrial Corporations Act No.49 of 1957, assisted a number of leading local small and Medium Enterprise - SME entrepreneurs to set up industrial ventures.

All existing SME entrepreneurs were brought recently under one organisation, "The Federation of SME industrial Association" by the IDB The Sunday Observer interviewed IDB chairman, Udayasri Kariyawasam a chartered accountant holding a Masters in Accountancy.

Q: What made the IDB to reorganise small and medium scale industrialists and business entrepreneurs.

A: In Sri Lanka the SME sector performs an important role in economic development. It represents over 80-90 percent of enterprises in the country and contributes over 30 percent in terms of value addition.

About 75 percent of SMEs are located outside the western province.

The SME sector needs closer attention and assistance to improve business.

The IDB is the main government agency which looks after the SME sector. SME entrepreneur network setup recently under the patronage of Traditional Industries and Small enterprise Development Minister Douglas Devananda functions as a sound link between the IDB and SME entrepreneurs. Electronic Database will also be setup soon for the benefit of industrialists.

Q: The SME sector encounters various difficulties in inputs such as finance, raw materials and marketing. What kind of assistance does The IDB offer them?

A: SME industrialists who are members of the IDB's Federation of SME industrial Association have easy access to its services. Regional development, planning, marketing, engineering, technical services, entrepreneur development are some of the IDB's specialized services.

Q: The IDB runs 18 industrial estates all over the island, where infrastructure facilities are provided to industrialists. The Atchuveli Industrial estate in Jaffna was not functioning during the last few years. What is the present situation?

A: The Atchuveli industrial estate has been revamped and is now in operation. It was one of the very successful industrial estates until LTTE terror struck.

Q: What are the opportunities available in the IDB industrial estates for industrialists?

A: SME industrialists have ample opportunity to setup industries in Galligamuwa, Pussellawa, Vavuniya, Beliatta, Kotagala, Nagampatha and Matale. Applications have been called from prospective industrialists. A 30-day crash program to update infrastructure facilities in all industrial estates is now in progress.

Q: The IDB was not in the forefront during the last couple of years despite its valuable contribution to the development of the SME sector in the country?

A: The lack of leadership was the stumbling block. Leadership credibility is vital to an institution which handles entrepreneur development and training, marketing and consultancy. Even inside the organisation, the six posts of departmental heads in the IDB remained vacant.

However, in the last few months, the IDB has returned to its former glory.

Q: What is the IDB package of services offered to potential industrialists and the self-employed?

A: Transfer of technology in food, chemical, leather and rubber industries, Industrial information, product development, entrepreneurship development and consultancy services, engineering, foundry workshop, electroplating, fabrication of machinery, infrastructure facilities, sub contracting facilities, provision of raw material, industrial village development programs, and self employment program are the services that are available.

Q: The IDB's new role is to train SME industrialists under the Divinaguma the economic revival program launched by the Economic Development Ministry. Agricultural projects are also setup islandwide. What was the progress made in the SME industrial sector.

A: The IDB has completed the preliminary activities including training islandwide for potential industrialists with the assistance of relevant ministries. the launch of the industries will be done after studying aspects such as distribution, publicity and marketing.

Q: What was the response of those who participated in the Divinaguma training sessions.

A: The youth had shown a keen interest to start their own industries based on local raw materials such as rubber, leather, coir, kitul, jaggery, oil, water, rice, fruit and vegetables.