The SME sector in Sri Lanka is considered as the
backbone of the economy with their significant characteristics on employment
generation, GDP growth, improving innovation capability and stimulating of
other economic activities in Sri Lanka. In the country, more than 80% of
businesses run by SME’s which are mainly in foods processing, manufacturing and
construction fields. In addition, they
supply about 35 percent of employment and about 20 percent of total industrial
value addition (Galagoda, 2008).
