Enhancing Production in “Ekala Industrial Estate”: Problems and Potentiality

Abstract

The “Industrial Estate Programme” is essential and has a significant contribution for developing the economy of Sri Lanka. The Industrial Estate is a huge land allocated to small and medium level industries by the government. This programme is powered by Industrial Development Board (IDB) in Sri Lanka and they procure developed plots, building blocks and infrastructure facilities like Electricity Power, Water supply, Telephone, Internal Roadways to Small and medium enterprises (SME). Entrepreneurs can rent a location and install industry and then proceed and continue their production. This study aims to identify the main problems that affect enhancing the project of “Ekala industrial estate” and the potential industrial factors in the estate. The sample survey was conducted using 50 entrepreneurs in “Ekala industrial estate” between December 2007 and February 2008. Random sampling method was used to select the sample. Questionnaires, interviews and observations were used to collect primary data. Research findings show that entrepreneurs faced problems regarding the entire location when they were establishing the estate. The researcher identified the problems such as lack of labour, lack of raw materials, maintenance problems, market not being expanded, loan and insurance problems. In this study, potential factors like satisfaction of daily production and market price, anticipation of product promotion, procure facilities and technical knowledge by IDB could be identified as positive factors. Results of this study show some implications such as making fixed labour stockpile, expanding local and foreign market opportunity and creating simple methods for obtaining loans and insurance facilities to improve the ability to enhance production.