Long -overdue...

sources through trade associations to train staff and promotional activities like producing brochures. In addition, under the new enterprises the project targets air and land based adventure activities; vessel purchases for operations like whale and dolphin watching and other similar activities, Mr. Ashraff explained.

The matching grant scheme project would conclude by September 2014, the project director said.

He noted that another part of the World Bank funding of US$ 2 million would be released for institutional development that was yet to be worked out between the funding agency, the ministry and the tourism industry.

However, industry experts speaking with the Business Times said that ideally those SME entrepreneurs who were operating without a licence should have been brought into the mainstream sector like those operating on the beaches of Hikkaduwa.

It was pointed out that these small businessmen would have ideally gained by ensuring they were provided licences to operate and brought into the mainstream.

One expert said the authorities should have gazetted the SME allocations made under the project and then looked at these businesses that required assistance; relaxing regulations to bring them to the mainstream operations and then allocate the necessary funds for the upliftment of these projects.

He said the project had deviated from this original plan with bureaucrats within the ministry at the highest level being responsible for its delay and continuous “dilly dallying” in the project work, repeated removal of project directors, and repeated changes to the structure and concept of the project.

Originally the plan was to fund institutional development with policies, infrastructure development of the East and a matching grant scheme. The East was targeted since the project was proposed at a time when potential for tourism development in the East was identified.