FCCISL: Private sector more efficient than public sector

The chamber said the conflict over a period of three decades has rendered a large number of civilians displaced and FCCISL’s concern has been that a large number of livelihoods, micro, small and medium enterprise have been badly affected by this never-ending conflict.

On the heels of the successful ‘Back to Business’ project which is resurrecting and rehabilitating the business community affected by the tsunami, the Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL) is embarking on another major business oriented humanitarian mission - ‘Rehabilitation of Conflict Affected LMSME (Livelihoods, Micro, Small and Medium Enterprises) that are badly affected by this conflict.

This programme also comes under the ‘Back to Business’ a component of Business for Peace Initiative (BPI) which is alive to the magnitude and urgency of the situation and it would be activated in the northeast and bordering districts, the chamber said, a week after winning a global chamber award for its Back to Business programme.

The chamber said the conflict over a period of three decades has rendered a large number of civilians displaced and FCCISL’s concern has been that a large number of livelihoods, micro, small and medium enterprise have been badly affected by this never-ending conflict.

It said it believes in peace through economic rehabilitation and launched the Business for Peace Initiative in October 2006 which has been involved in many ground breaking efforts such as the establishment of the wholesale distribution network in Killinochchi and reactivating private sector traders in Jaffna through facilitating the shipment of essential goods to Jaffna in association with the Commissioner General of Essential Services.

The FCCISL BPI has drawn up plans to rehabilitate 1000 LMSs in Ampara, Batticaloa, Jaffna, Kilinochchi Mannar, Mullaitivu, Trincomalee, Vavunia and the border districts in the Puttalam, Anuradhapura and Monaragala Districts through their local chamber network.

The main objective of the project is to recognize and rebuild 1000 conflict affected Micro, and Small enterprises including livelihoods by end August 2007. The specific objectives are bringing back to business 1000-conflict affected enterprises in Sri Lanka which are categorized as livelihoods -- 300 including 105 women entrepreneurs; Micro Enterprises: 550 including 195 women entrepreneurs and Small Enterprises including 150 women entrepreneurs.

SPD takes into consideration, the working capital and basic capital goods requirements, procurement of machinery and equipment, engineering assistance in the installation of machinery and construction of buildings, assistance in re-establishing marketing channels and identification of new markets and training programmes for the infusion of management know-how in the fields of:

* Production and productivity improvements, general management, records maintenance, marketing, technology transfers and upgrading, accountancy and book keeping practices, credit requirements and other areas as per the requirements of the specific beneficiary. The different categories are defined as: Livelihoods – Self-employment/subsistence level – Rs 20,000 - 50 percent working capital and 50 percent purchasing capital items, Micro Entrepreneurs – upto four paid employees – Rs 60,000 – 50 percent working capital and 50 percent for purchasing capital items, Small Enterprise – five to 20 paid employees – Rs 100,000 – 50 percent working capital and 50 percent for purchasing capital items. In all cases money will be paid direct to the main supplier.

The special objectives also include creating 3,000 employment and or re-employment opportunities by end September 2007 and to provide trauma counseling, business orientation and business management and or similar training to 1000 entrepreneurs including livelihoods.

The funding partners for the Project are the Embassy of Netherlands in Sri Lanka and Handwerkskammer Koblenz and the implementing partners are the FCCISL’s affiliated Chamber network and other connected associations including their district chambers of Anuradhapura, Ampara, Batticaloa, Trincomalee district, Yarlpanam, Women’s Jaffna, Kalmunai, Killinochchi, Mannar, Monaragala, Mullaitivu, Polonnaruwa, Puttalam and Vavuniya.

The chamber said a National Core Group (NCG) is in place to achieve the objectives of formulating policies on financial and other interventions for LMSME development where direct state interventions are needed; assisting at national level issues of beneficiaries that could not be sorted out at district level; proposing directions for greater effectiveness of the project and understanding initiatives from other organizations in similar directions. There is a District Coordinating Committee to recommend to NCG.

Migara Dunuwila, Consultant, Marketing and Business Development, FCCISL said that the unique features of the RCA-LMSME are it has been meticulously programmed and planned taking in all the minute details and facilitating crisis situations that would crop up while the programme progresses.

The other most important unique feature is the monitoring of all affairs of the project. The other important aspect would be the completion date. The programme is focused in such a way that all the requirements of the project would be met by end August 2007.