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SMEs REQUIRE MORE

ATTENTION AND FOCUSED

SERVICE OF THE GOVERNMENT

It is evident that Sri Lanka’s implementing policies and regu-
economy has been strengthening lations. For developing countries
by Small and Medium Enterprises like Sri Lanka which suffer from
(SMEs) over decades after inde- lack of large and extra-large scale
pendence. According to Raman- businesses due to deficiency of
ayake (2019) SMEs contribute to investors, it is vital to strengthen
Gross Domestic Product of Sri SME sector because they under- Mrs. KLBG Dharmaratne
Lanka by 52% and to gross pin the economy by creating Senior Lecturer
domestic employment by 45%. In employment opportunities and Department of Business Management
fact, they decrease the disparity of increasing per capita income. Faculty of Management Studies
income distribution, incite inno- Many of the governments that Sabaragamuwa University of Sri Lanka
vations, mobilize resources and ruled the country after independ-
stimulate medium and large-scale ence have understood this fact
organizations. SME sector is the- and prioritized SME sector. But,
refore considered as the spine of when analyzing the present
economies of both developing contribution of this sector in the
and developed countries. Hence, national economy, it is clear that
irrespective of whether they the sector has not achieved
are developing or developed desired level of contribution
countries, policy makers of any when compared with other devel-
country should prioritize SME oped and developing countries in
sector when formulating and the region (Gamage, 2003).

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