Sri Lanka mulls linking its considerable SME base to global markets through a highly active industry sub-sector. The SMEs, a core sector of Sri Lankan economy creating more than 50% its employment, have their biggest presence in ‘food processing’ sub-sector.
“There is a great number of micro and SME enterprises active in this industry. In fact we believe that more than 40% of our SMEs are in the food processing sector” said the Minister of Industry and Commerce Rishad Bathiudeen on 27 February. Minister Bathiudeen was addressing the Pro Food-Pro Pack industry awards event at Colombo’s Kingsbury Hotel. He was joined by visiting industry representatives from India and China as well as President of Sri Lanka Food Processors Association Maliek De Alwis and its Secretary Thusith Wijesinghe. The evening event also launched the 17th Pro Food-Pro Pack exhibition to be held this August. Launched by the Ministry of Industry and Commerce in 2001, this series has become one of the largest food, beverages, packaging and agri-business events in South Asia.
“This expo series is only one of the initiatives by my Ministry to help the processed food and packaging sector. Since the launch of this series in 2001 there has been much progress in the processed food sector by way of improvements in technology, packaging, product development, and marketing. I am given to understand that more than 50 firms from India and China shall be taking part at this August’s Pro Food-Pro Pack expo in Colombo. I call the industry representatives from India and China taking part at this evening to invest in our food and packaging sectors and partner with our sectors. Our efforts to develop these sectors are a part of our bigger plan to link them sector to our exports” said Minister Bathiudeen and added: “My ministry has launched many projects for these sectors. The most important is the setting up of Sri Lanka’s first Accredited Food Laboratory for SMEs by the Industrial Development Board. This is the first such facility for the SME food sector of Sri Lanka. This lab is also the first lab that is ready to test food products from all Districts of Sri Lanka and will use both local and international standards such as SLS and ISO. Small scale food makers in Sri Lanka is a sub sector that needs support. We are continuing the “Industrial Productivity Market Competitiveness and sustainability improvement programme” for the sixth year. So far 100 companies benefitted in Good Manufacturing Practices (GMP) and ISO 14000 certifications under this program. We are also continuing the “Developing Small Scale Food Industries by Improving Processing Technology” project for them to give access to technology. We have decided to expand this as an island-wide project. Specially the SME and micro food producers need support in packaging. Our project “Facilitation of SMIs in food sector through packaging” helps them to upgrade promotions and marketing. Our research has shown that MSMEs need support to enhance their packaging and marketing. This project will also take place in all districts and five companies from each district will be selected.”
In 2017 and 2018, the Ministry has invested Rs 240 Mn towards food and packaging development projects.
Sri Lanka’s food processing industry employs 1.5 million workforce directly and indirectly and reports an around Rs 100 million in its annual domestic production.