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• W1567209587 abstract "Because of the inability of the agricultural sector, due to its physical limitations, in continuing as the major contributor to the economic development of Sri Lanka the need to promote the industrial sector has increased greatly in recent years. Small-scale industrial enterprises, in particular, deserve more encouragement since their labour intensive character is consistent with the relative abundance of labour and the scarcity of capital in the economy. However, statistics reveal that the growth performance of the small industry segment has not been satisfactory after the year 1977. The main reason for this seems to be the unfavourable effect of the 1977 policy reforms. It is necessary, therefore, that while protecting small enterprises from the harmful effects of the said policy reforms, steps be taken to promote small industry on the basis of a well planned longterm strategy as a complementary segment in the overall industrial sector, if Sri Lanka is to succeed in her industrialisation effort. Acknowledgement: The author gratefully acknowledges the helpful comments provided by Mr. Garry E. Tibbits and Mr. Robert P. Shannon of the University of Wollongong and Dr. Premachandra Athukorala of La Trobe University. STRUCTURE AND GROWTH PERFORMANCE OF SMALL INDUSTRY IN SRI LANKA Introduction Small industry accounts for more than half the industrial employment and contributes a large proportion of total industrial output in the developing world. Though its relative importance tends to vary inversely with the level of development, the contribution it makes remains significant even in the most advanced economies. Obviously, most of the characteristics of small industry are of great relevance to developing economies. Its labour intensive character, for instance, is consistent with the relative abundance of labour and the shortages of capital and foreign exchange characteristic of developing countries. Thus, small manufacturing units have the potential to play a vital role in the process of economic and social development of these countries provided they are integrated with the larger framework of growth which requires careful thought both in formulation and implementation (Marsden, 1981: 33; Vepa, 1971: 1). The purpose of this paper is to present a case for the development of a policy which encourages both growth in and increased effectiveness of small manufacturing units in the light of the experience of Sri Lanka. Sri Lanka, like many other developing countries, experiences high unemployment and persistent balance of payment problems. Traditionally, agriculture has been the major contributor to the economic development of the country. However, physical limitations preclude that sector from sustaining significant contributions to economic growth in the future. In light of this, consideration should be given to encouraging sustainable growth in other sectors such as manufacturing, and the small industry segment in particular. Inspite of the significance which small industry bears in many respects in the social and economic development of Sri Lanka, this sector of the economy and the possibilities of promoting it have not yet been intensively examined. The information" @default.
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• W1567209587 date "1989-01-01" @default.
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• W1567209587 title "Structure and Growth Performance of Small Industry in Sri Lanka" @default.
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