Sme Definition In Sri Lanka

These are found in all sectors of the economy primary secondary and tertiary and provide employment for persons of different skills skilled semi skilled and unskilled.

Sme definition in sri lanka. Small and medium enterprises smes play an important role in economies in terms of their contribution to national output employment and share of firms operating in countries. Small and medium scale enterprises smes make up a large part of sri lanka s economy accounting for 80 per cent of all businesses. Then another definition is less than 50 people but an asset base of 20 million. The world bank states that if any enterprise has less than 99 people it can be termed an sme.

Over the years smes have gained wide recognition as a major source of employment income generation poverty alleviation and regional development. In sri lanka they form. Sri lanka accounting standard for smes is a self contained standard tailored for the needs and capabilities of smaller businesses. The small medium enterprise sme sector has been identified as an important strategic sector in the overall policy objectives of the government of sri lanka gosl and it is seen as a driver of change for inclusive economic growth regional development employment generation and poverty reduction.

The criteria is annual turnover and number of employees is given in table 6. After long years without a clear definition for smes ministry of industry and commerce has finalised a definition for sme in 2015 under its national policy framework for small and medium enterprise sme development. Small and medium enterprises smes have been identified as an important strategic sector for promoting growth and social development of sri lanka.