Abstract:
irrespective of the stage of economic development, small and medium enterprises
(SME~) constitute and continue to be a main source 0/ growth of a nation. Sri
Lanka is no exception to this phenomenon. However, it is a paradox that a large
number of SMEs in Sri Lanka are struggling to survive in to days competitive
environment. Absence of any networking and cooperation among the SMEs and
lack of linkages with large scale industries have aggravated these problems. This
study endeavors to ascertain the main issues faced by the Sri Lankan SMEs with
special emphasis on the furniture and wooden sector. The study was conducted in
the Moratuwa area which is a main hub of the furniture and wooden products
manufacturing sector in the country. The study reveals that the SMEs are facing
various obstacles in developing their business. These issues fall in the domains of
financial management, human resources, product and process technology
management, business regulations, intense competition from cheap imports, lack of
infrastructure and so 011. In spite of various policy initiatives, concessions and incentives offered by successive Sri Lankan governments and the assistance [rom
various donor agencies, SM1:,·.\·need further assistance to grow. The study
concludes with recommendations II! overcome these obstacles to enable the 8MEs
to develop their full potentials.
