COSMI says COVID-19 rare opportunity for lagging SMEs
View(s):Restrictions placed on imports of non-essential items is a welcome step in the face of the COVID-19 pandemic-and more so for the revival of the country’s agri-SME sector, a new SME association has said.
“Government’s limiting and ban on imports of non-essential items shall help local enterprises looking to get into the production and processing of these items. We believe this situation presents the country with a rare opportunity to kick-start the revival of several local SME sectors,” the Confederation of Micro, Small and Medium Industries (COSMI) Founder President Nawaz Rajabdeen said in a statement.
“SMEs in agri-business, aquaculture, poultry and other livestock are some of the priority sectors that can make use of government’s support if given. Also the strong domestic demand for their produce during this COVID crisis shows low market risk for their supplies with possible immediate profits so that many connected livelihoods too get a boost. We need to understand that SMEs are everywhere-in urban and rural areas. Therefore in a crisis, our consumers first visit the SMEs and micros, rather than big companies –in that MSMEs are not only economy’s lifeline but also of Sri Lankan consumers. We appeal to all the micro and small sector industries and the trade enterprises to take this challenge to get back to business with our support. We faced worst disasters such as the 2004 Tsunami with total destruction of small business enterprises in the coastal regions. At that time one of the challenges Sri Lanka faced was to revive and resurrect the micro and small sector industries. Let us take this as an opportunity and a challenge and rise back,” Mr. Rajabdeen added.
The agri-business sectors that the local SMEs are in spices, teas including specialty teas, herbal medicinal and beverage supplements, coconut and oils, short-eats, and fruits and vegetables. Aquaculture sectors where local SMEs are in are ornamental fish and ocean fisheries including fishery cooperatives and processing.
On March 19, the Central Bank brought in several measures to ease exchange rate pressures and prevent market panic due to the COVID-19 pandemic. It directed the banks to adopt three measures-suspending import of all types motor vehicles, suspending importation of non-essential goods and encourage purchase of Sri Lanka International Sovereign Bonds.