Abstract
This study attempts to recognize level of human and physical resources available for SMEs in both Central and Uva provinces along with preparing a diagnostic framework for SMEs. The results highlight lack of/non- availability of appropriate physical and human resource impacts most existing and new SMEs. Issues related to physical resources include limited access to modern technology, machinery and upgraded infrastructure. Moreover, despite, the availability of human resources the lack of skilled and experienced workers is a critical factor in SME development in these regions. As per the quantitative results, Badulla and Monaragala districts lag the Matale and Nuwara Eliya districts in terms of availability of resources and its level of satisfaction among SME holders. According to the SWOT analysis, the key strengths of both Uva and Central provinces include availability of land and other natural resources, favorable weather conditions, suitable geographic landscape and natural beauty, cultural and religious sites of archaeological value, adequate human resources, availability of raw materials, sufficient infrastructure and availability of skilled labour in the garment sector. Main weaknesses which SMEs in both Uva and Central province experience include lack of skilled labour, lack of modern technology, unavailability of sufficient market opportunities, lack of initial capital and indebtedness, lack of expertise, land ownership issues and dependency mindset of inhabitants.. The study recommends employing necessary policies which can ensure required resources for SMEs while addressing both weakness and threats faced by SMEs in both provinces.