SMEs urged to capitalize on recently introduced import controls

• SMEs in agri-business, aquaculture, poultry and other livestock are priority sectors that could seize the opportunity 
• COSMI urges consumers to purchase goods from SMEs and MSMEs

Sri Lanka’s SME sector led by agri-SMEs is urged to seize the opportunity to thrive from the recent announcement banning and restricting imports of non-essential items, which is aimed at restricting forex outflows, Sri Lanka’s Confederation of Micro, Small and Medium Industries (COSMI) stressed. 

“Government’s limiting and banning of non-essential item imports shall help local enterprises looking to get into in 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,” said COSMI Founder President Nawaz Rajabdeen last Saturday. 

Rajabdeen was welcoming Co-Cabinet Spokesman Minister Ramesh Pathirana’s statement of the government’s decision to ban or limit all non-essential imports into the country except medicine and fuel.

“SMEs in agri-business, aquaculture, poultry and other livestock are some of the priority sectors that can make use of the opportunity if government support is 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 could get a boost,” Rajabdeen elaborated. 

He also urged consumers to purchase goods from SMEs and micros (MSMEs) rather than big companies while noting that MSMEs also makes up a large portion of consumers in addition to being the economy’s lifeline.
 

He also appealed to all the micro and small sector industries and trade enterprises to rise to the occasion amid the challenging environment. 

“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 challenges Sri Lanka faced was the revival and resurrection of the micro and small sector industries. Let us take this as an opportunity and a challenge and rise back,” he urged. 

The local SME agri- sector spans across several sub sectors including  spices, teas herbal medicinal and beverage supplements, coconut and oils, short eats, and fruits & vegetables. In addition, it is also present in aquaculture sectors such as ornamental fish & ocean fisheries including fishery cooperatives and processing.
The Central Bank on March 19th introduced in several sweeping measures to ease exchange rate pressures and prevent market panic due COVID-19 pandemic. 

It has directed the banks to adopt three measures - suspending import of all types motor vehicles, suspending importation of non-essential goods and purchase of Sri Lanka International Sovereign Bonds.
COSMI, which was formed last year, aims to revive and foster the MSME and industry sectors of Sri Lanka.