economic trends for sme development in sri lanka
TRANSCRIPT
ECONOMIC TRENDS FOR SME DEVELOPMENT IN
SRI LANKA
Socio - Economic Indicators
Sri Lanka at a glance
Multiracial Country – Total population 20.01 million (2007)
Area – 65,610 sq km (Water 870 sq km
Coastline – 1340 km
Natural Resources – Limestone, graphite, mineral sands and gems , phosphates, clay , hydropower
Poor house holds – 15.2%
Human Development Index – 0.74 (2005)(The placed 99 among 177 countries)
Contd:-
Life expectancy - Male 71.7 years Female 77 years
Total fertility rate - 1.85 children born/woman
People living with HIV/AIDS – 3500
Ethnic groups - Sinhalese 73.8% , Sri Lankan Moors 7.2%, Indian Tamils 4.6%, Sri Lankan Tamil 3.9%, Others 10.5
Literacy rate -92.5% ( Definition ; age 15 and over can read and write)
People
Age structure - 0 - 14 Years 24.4% 15 - 64 Years 68.4%
65 years & over 7.2%
Population growth rate - 1.1% (2007 est.)
Net migration rate - 1.27 migrants/1000 population (2005 est.)
Sex ratio - Total population - .96 male/female ( 2005 est.)
Economy GDP per capita - US $ 1617 (2007)
GDP composition by sector
Agriculture - 12.3%
Industry - 28.2%
Services - 59.5%
Labour force – 7.48 million (2007)
Country 1950 (US $) 2004 (US $)
Sri Lanka 89 1012 (12 times)
Japan 90 32000 (355 times)
Singapore 30 28000 (933 times)
Maldives 30 3120 (144 times)
Contd;
Unemployment rate – 6.5% (2006)
Population below poverty line – 5.6%
Gini index (Income distribution) – 0.46
(Zero is perfect)
Inflation rate – 14%
Investment – 27% of GDP
Industries – rubber processing, tea, coconuts and other agricultural commodities, clothing , cement, petroleum refining, textiles, tobacco
Exports partners – US 32.4% , UK 13.5% , India 6.8%, Germany 4.8% ( 2005 est.)
Definitions of SMEs
Total Assets Valve excluding land & building less Rs.1 M --Micro Industries
Total Assets excluding land and building ranging between Rs. 1-20 M. --Small Industries
Total Assets excluding land & building ranging between Rs.20-50 M. --Medium Industries
Source – Ministry of Industry & Investment Promotion (White Paper December 2003) (Draft Paper)
•Significant of SMEs
- More Labour intensive - Supply of Cheap Goods & Services - Less Value Addition - Sub Contracting Facilities - Generating an employment opportunities - Requiring Minimum Investment