COSMI calls Sri Lanka to engage private sector in milestone strategy switch

• ‘Let our private sector link agriculture to much needed exports’ – Rajabdeen
• Proposes engagement way forward: “Ready to support by enlisting Chamber and SME networks”

Sri Lanka’s new economic focus of agricultural sector revival is timely and a welcome step – still it is the Engine of the Economy that will make the new initiative sustainable in the medium to long run.

“We commend President Gotabaya Rajapaksa’s decision to assist agriculture and key industries in all districts. Giving priority to build the economy based on agriculture is in line with the country’s social makeup-and more so with emerging global food security issues due to the COVID-19 pandemic. Inclusion of the private sector, which contributes more than 50% to the economy is the missing link to make new strategy sustainable,” said COSMI Founder President Nawaz Rajabdeen on 29 April.

COSMI’s Rajabdeen was welcoming President Gotabaya Rajapaksa’s decision to give priority to build a local economy based on agriculture. “Enlisting the private sector which is equipped with many resources including supply chain capacities, in this new initiative could be exactly what the Sri Lankan agri-sector needs to lift itself up. As the engine of our economic growth, private sector can help unlock the full capacity in Sri Lanka’s agriculture and crops. Private sector’s resilience, low waste, demand driven production, productivity and process efficiencies can be introduced to the agri-sector while private sector can benefit from locally made, ready supply of agri-products and raw materials coming to them directly from the farm at farm-gate prices. There are clear win-wins for both sectors, with an overall final food security guarantee for the country on such a collaboration,” said Rajabdeen.

“We propose that a very viable way to forge this partnership is by mobilising the existing Chamber network in the country. This network in turn can get Sri Lanka agri-sector the much needed storage, logistics, farming technologies and waste-reduced delivery and most importantly, the global trade and export linkages. Our private sector considers the Chambers as an asset. Just as we believe SMEs are a key driver of economy, we also believe that agri-smallholders to be a key driver in local agriculture – and this is a strong network of its own that can be used in agri-revival. 

“Therefore, we propose that development projects at regional and district levels to target Agro-based industries, livestock farming, light metal industries, and other livelihood projects and joined by private investors, and SMEs. This can commence immediately with the participation of the women and youth entrepreneurs from all the districts, via the private businesses, regional and district chamber organizations and other trade associations of MSMEs. Public Private Partnership (PPP) model can be leveraged for success in this initiative in medium and large scale private sector-agro-industry partnerships. 

“As COSMI is closely involved in reviving industrial MSMEs island-wide via the grassroots, COSMI is ready to play a catalyst role in this if called. We also propose that the Ministry of Mahaweli, Agriculture, Irrigation and Rural Development to be a major partner in this program since it has a direct role in Sri Lanka farmers’ wellbeing and know-how on local farming,” he added.

Almost half of the rural farmers in Sri Lanka are small scale farmers. The Confederation of Micro, Small and Medium Industries (COSMI) was formed in 2019, and aims to revive and foster the MSME and industry sectors of Sri Lanka.