Abstract:
The SME sector is widely accepted as a seedbed for entrepreneurs in providing various socio-economic
objectives such as unemployment, job creation, innovation, and the long-term economic development of
the country. The contribution given by the government on SME inclusive growth of the country is quite
impressive. This study attempted to identify the impact of Government intervention on SME performance
in the rural sector in Sri Lanka and the perception of SME owners to evaluate the effective government
intervention mechanisms. Both primary and secondary data were used. Face-to-face interviews were
conducted with 50 SME owners using a structured questionnaire in the Kurunegala district. The study
emphasized,there isa significant impact on government intervention programmes and the performance
of SMEs in the rural sector. The study emphasized the Government intervention might be vital in
supporting four areas i.e. financial inducement, Human resource building, and Brand building, and new
