Sri Lanka’s food exports in 2016 has jumped by a huge 112% to US $ 240.48 Mn doubling from 2015’s $ 113 Mn in the categories of processed fruits and vegetables, confectionary & bakery items and processed foods.
“We believe that more than 40% of our SMEs are in food processing sector. These efforts are a part of our bigger plan to link this sector to our exports” revealed the Minister of Industry and Commerce of Sri Lanka on 4 August in Colombo.
Minister Bathiudeen was addressing the launch of the 16th edition of Pro Food Pro Pack Agribiz international expo at BMICH.
“We believe that more than 40% of our SMEs are in food processing sector producing at an annual reported value of Rs 100 million and employing 1.5 million people. This sector is therefore highly significant in our economic planning” said Minister Batiudeen, and added: “As a result my ministry has allocated close to Rs 195 million (US $ 1.2 Mn) for this year alone to enhance Sri Lanka’s food sector in many projects. The most important project is the setting up of Sri Lanka’s first Accredited Food Laboratory for SMEs called as the Centre for Food Analysis and Food Safety under the Industrial Development Board of this Ministry. This is also the first such facility for the SME food sector of Sri Lanka. The cost of this lab facility is Rs 140 million President-Sri Lanka Food Processors Association Maliek De Alwis said that the food sector within Sri Lanka’s SMEs could be way larger than officially believed. “The food sector presence within Sri Lanka’s SMEs could be more than 50%-almost 60% if we are to count the unregistered micro, village level food suppliers, and urban restaurants, street-side small hotels and bakeries. The Ministry’s efforts will be relevant to all of them.”
SMEs play a critical role in Sri Lanka’s economy. Reports say more than 60% of the GDP contribution is from SMEs. National statistics show a little more than one million registered SMEs to be found in Sri Lanka -each employing three persons on average.
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