Background – In contrast to the infrastructure, the recovery of the local economy from the Tsunami has been fraught with difficulties. There is a distinct shortage of knowledge and experience, both vital for rebuilding the destroyed SMEs and setting up new companies. The management and social problems are holding back the economic recovery. The renewed outbreak of fighting between the rebel movement, the Liberation Tigers of Tamil Eelam (LTTE), and the Sri Lankan government troops has further damaged the already weak local business in the north and east of the island.

Project – In ten villages in the districts of Ampara and Batticaloa, Swisscontact is promoting the rehabilitation of local SMEs and their markets, e.g. with training and further education in the region’s most important trades, as well as on management topics. Community centres are being equipped to enable them to serve the population as communication centres, as well as accommodating the new businesses during the start-up phase. SMEs are advised inter alia to meet the conditions for micro credits. Should they receive such credits, Swisscontact will double the amount pledged by the crediting institution. The project deals with social problems (including alcoholism and family violence) by holding public awareness-raising meetings, and vulnerable individuals are being discretely looked after, along with those who might represent a threat.

Around 2,500 people are benefiting directly or indirectly from the projects in the north and east of the island, either by finding a job in one of the resurrected small businesses, or by broadening their business skills and thus increasing their chances of securing an adequate income. The aim is to ensure that the economy recovers at the local level through the people’s own initiative. A qualified workforce and an efficient public administration are important prerequisites for this.