Abstract

SMEs in Sri Lanka steers the Sri Lankan economy as they increase gross domestic product and employment opportunities. With the past statistical data, it was indicated that a mixture of success and failure are faced by SMEs as a result of the current economic situation. So as a supportive partner, the government has given a number of opportunities and reliefs to overcome the failures faced by SMEs. Hence, the main purpose of this study is to investigate the effect of the national policy framework on the performance of small and medium enterprises in Gampaha District, Sri Lanka by analyzing the national policies formulated by the Sri Lankan government. Data were collected using questionnaires and interviews for the study. It was found out that there is a significant relationship between National Policy Framework and SME’s performance in Sri Lanka. The study will provide guidance to all relevant authorities including the government of Sri Lanka in identifying the application of policies designed and in making corrective actions. Further, this study offers some relevant recommendations to policymakers to implement better policies that are more favourable for business owners.

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