In a fresh initiative aimed at enhancing the working relationship between the Small & Medium Sized Business Entities (SMEs) and the Small & Medium Sized Practitioners (SMPs), the Institute of Chartered Accountants of Sri Lanka recently signed a Memorandum of Understanding (MoU) with the Ministry of Traditional Industries and Small Enterprise Development.
The MoU will enable SMEs to have access to a broad range of professional and other support services from SMPs to grow their business and in turn will create business opportunities to the SMPs by providing such services for a reasonable fee.
The agreement was signed by Mr. V. Sivagnanasothy, Secretary to the Ministry of Traditional Industries and Small Enterprise Development and Mr. Arjuna Herath, President of CA Sri Lanka in the presence of Hon. Douglas Devananda, Minister of Traditional Industries and Small Enterprise Development.
The MoU will pave way for the ministry to create awareness among SMEs about the services that can be obtained from the SMPs in order to upgrade and strengthen the capacity of services that could be offered by the Practicing Chartered Accountants.
Mr. Herath underscored that SMEs are a vital component of Sri Lanka’s economy, however despite their importance to the economy, SMEs face many constraints, among which their lack in financial expertise is a serious issue.
“SMEs require assistance in preparing financial proposals to obtain credit facility, book keeping, preparation of project proposals, auditing, accounting, financial analysis etc. and thereby SMPs can play a significant role in supporting SMEs in such activities. Hence I believe this agreement with the Ministry of Traditional Industries and Small Enterprise Development will make way to address these concerns facing the SMEs and will thereby also create a very strong link between SMEs and SMPs,” Mr. Herath added.
The agreement will allow the ministry to introduce the SMPs to all SMEs by way of making a list available of registered SMPs which will be advertised via the ministry website, and through other communication mediums.
The Ministry and CA Sri Lanka will also facilitate to help set up a SME Help Desk at the Department of Inland Revenue, Department of Labour and the Central Bank of Sri Lanka to resolve tax matters, labour and banking issues at the respective regions.
The agreement also allows the ministry to open help desks across all districts to ensure better service to the SMEs, while CA Sri Lanka will also develop a strategy for encouraging a greater number of SMPs to establish themselves outside Colombo.
CA Sri Lanka will also develop and introduce a financial literacy programme aimed at educating SME owners.
Mr. Lasantha Wickramasinghe, Vice President of CA Sri Lanka, Mr. Aruna Alwis – Chief Executive Officer of CA Sri Lanka, Mr. Jagath Perera – Chairman of the SMP Capacity Building Task Force, and Mr. German Mueller – Senior Advisor to Deutsche GesellschaftfuerInternationaleZusammenarbeit (GIZ) GmbH among other officials of CA Sri Lanka, GIZ and the Ministry were also present at the signing ceremony.
