Over the past several weeks, a new reality has emerged, and everyday life has changed drastically. Some businesses carrying out essential services to survive, are turning to digital services while others are redefining the way they operate. While the sudden transition has caused much strain, it is also testing our resilience, the ability to learn on-the-go in the face of adversity.
The Government took timely action to lockdown areas, thus arresting the spreading of COVID-19. The national health service is carrying out an exceptional feat, assisted by the Police and the security forces to contain the situation.
MSMEs (Micro, Small and Medium Enterprises) penetrate everywhere – whether in urban or rural areas, and are invariably the first point of contact at a time of crisis for the consumer, rather than the big corporates.
Therefore, MSMEs are not only the economy’s backbone, but also the lifeline of Sri Lankan consumers. SMEs in agri-business, aquaculture, poultry and other livestock are among the key sectors that can make use of the government’s support if given. The strong domestic demand for their produce during this crisis shows low market risk for their supplies with possible immediate profits and a boost to their livelihoods.The agri-business sectors largely supported by SMEs are teas including specialty teas, herbal medicinal and beverage supplements, coconut and oils, short eats and fruits and vegetables. Aquaculture sectors include ornamental fish and ocean fisheries including fishery cooperatives and processing.
On March 19, the Central Bank brought in several measures to ease exchange rate pressures and prevent market panic due to the pandemic. It directed the Banks to adopt three measures - suspend the import of all types vehicles, non-essential goods and the purchase of Sri Lanka International Sovereign Bonds. This is the ideal time for local enterprises to step into the production and processing of such items, presenting the country with a rare opportunity to trigger a revival of several local SME sectors.MSMEs have proved their mettle under gruelling circumstances before. When the tsunami struck in 2004, an estimated 35,000 people lost their lives, and over 900,000 were displaced overnight, with total destruction of assets and properties of small business enterprises throughout the coastal region. At that time Sri Lanka faced the biggest challenge to revive and resurrect micro and small sector industries.
The most valuable characteristic in human beings is the ability to adapt and survive, and the same applies to MSMEs as well. Micro and small sector industries and trade institutions must look upon this as a challenge to get back to business.
There is also a saying that we must set our sails according to the wind, and it’s time to adjust our sails now. Let us look upon this challenge as an opportunity, and rise back to business even better than before.
We are confident that WUSMI can play a very supportive role in putting MSMEs worldwide back to business.
The writer is the Ambassador in Sri Lanka for the World Union of Small and Medium Enterprises (WUSME)