The rapid change in technology, the speed with which the volume of information increases, the changes in information-seeking patterns and the changes in higher education have forced university authoritiesto rethink the traditional roles of libraries and to invest them with exiting new roles. The University of Sri Jayewardenepura (USJP), being the largest university in Sri Lanka in terms of student number, has taken the challenge of tackling the changing role of the library successfully.  At the moment, the library services 05 main faculties: Humanities and Social Sciences, Applied Sciences, Management Studies and Commerce, Medical Sciences, and Graduate Studies and it hopes to extend its services to the two newly established faculties of Engineering and Technology. The user community consists ofnearly 15000 undergraduate and postgraduate students and nearly1000 academic and non–academic staff. The changes done at the USJP library can be categorized into two main areas: a) library services and productsand b) the physical environment.  Both of these areas were included in the “modernization project” of the library, which started in 2015 but some changes had happened before this project as well.  For example, when considering the services and products of the library, the major achievement of the library in recent times was the migration of the integrated library management system from Windows for Alice, to the open source system, Koha, in 2014.  This migration helped not only to have an efficient system, but to save money on annual maintenance charges.Within this system, all users are registered in the e-system and they have no more hassles with library cards.  Patrons can also check the availability of an item using Koha.  Online item reservation and renewing facilities are also available.   In order to support the emerging research culture in the university, the library established a research support unit in 2015. In view of streamlining the user education programmes, a separate unit was established in January 2016. The library’s institutional repository named ‘Scholar Bank’, set up in early 2012, where the publications and academic work of staff and students aredeposited, is very popular among the user community. The number of electronic databases available to the universitywas increased from 1 to 7 with the consortium facilities provided by the University Grants Commission in 2014. The efficiency of the Inter LibraryLoan (ILL) service was increased by assigning a dedicated team separately for this in 2013.  This servicefulfillsthe needs of our own user community as well as the needs of outside libraries.With the introduction of the cash register in 2012, library fines are paid at the counter itself and users are not sent to the finance branch which is located in a separate building. Upon the request of the English Language Teaching Unit (ELTU), USJP, we designated a section of the library as the English Learning Zone (ELZ). This has very simple English story booksand leveled readers and this is heavily used by the students during their first year where the staff of ELTU combines its programmes with the library. Radio Frequency Identification (RFID) tags were put in use with the new detection gatesin 2015, as a precaution to minimize unauthorized movements oflibrary property. Along with this, a security surveillance system, CCTV, will function soon to prevent thefts and mutilation of library material. The library started a laptop lending service to students in 2015 and students are allowed to bringin their own electronic equipment to the library.   Wi-fi was provided to designated areas of the library in mid 2015 and theseare now full of students using computers. With regard to the physical environment, improvements started with air conditioning provided to the areas used by students. The beautification of the library was done by having reading promotion posters and pots with foliage on appropriate locations.  Specially designed furniture like the “READ” rack, gadget corners, triangular shaped movable computer tables, lobby sofas, multi-revolving racks have been placed at strategic corners to attract users.  Kiosk type touch screen computers will be provided in the lobby for interactive searching of library items. Some more changes that have been implemented in the library are as follows: The library books which have not been used for the last 30 years or so and are not permitted to be withdrawnare kept as a separate collection named “Depository Collection”. This process helps to give a fresh look to the existing collections.“Just-returned” books are kept for few hours before re-shelving in a rack on the same floor where the counter is located. A photocopier is kept in the permanent reference section to make users avoid taking the books out from that section. A suggestion box and a book are kept at the counter to entertain comments from the users.  Noticeboards were fixed and regularly updated so that users regularly check them for announcements. A coin operated Nescafe machine was installed inside the library to provide refreshment facilities to patrons without them having to go out from the library. Though it is not common to have newspaper reading facilities in academic libraries, our library also provides this facility to fulfill user needs. It is proposed to have research commons, individual and group study areas for students in the future. An elevator will be fixed for facilitating easy access to the upper floors and convenient material handling. More importantly, a library building renovation project is underway. It is hoped that upon the completion of the renovation, a conducive environment will be created in the library to attract users. Librarians need to support the improvement of the learning experience of students. The USJP library staff has addressed this by developing information literacy modules for all levels of students which help students to improve their critical and analytical abilities. Our library has an updated attractive homepage which acts as an entry point to library resources.  The library web was updated in 2015 with the assistance of the university web team. The USJP library has many areas of strengths on meeting these new roles successfully. Foremost in this, is the support extended by the university authorities to make the library improve in its many areas.  A dedicated and skilled library staff is the driving force behind this and it is very much in evidence in the library at USJP.  The support extended by other units is also vital: the IT centre, the web team of the university, the ELTU, the Staff Development Centre, the Supplies Division of the university deserve special mention. The strong collaboration between the library and the academics of the university is very important in providing quality library services and it is much in evidence.  The relationships with colleagues in other libraries and institutions both locally and internationally are also helpful to get ideas in innovative things and the library of USLP is successfully placed within this vibrant network.    

1. INTRODUCTION Entrepreneurship has become more important in today’s world as it is the main factor which creates new products and creates new organization. The development of a country relies on the success of the organizations and industries which creates employment, utilize resources, introduce new technology, brings foreign income etc. Therefore, entrepreneurship is an important topic which we need to focus on. As the importance of an entrepreneur was identified, an empirical research was conducted to justify the role of an entrepreneur to the development of Sri Lanka. The study was piloted by researching an outstanding entrepreneur in Sri Lanka “Merrill J Fernando” the founder of “Dilmah” Tea, one of the leading and renowned brand in the world. Merrill J Fernandois an extraordinary entrepreneur considered as the personwho produces single origin tea in the whole world.He is the only CEO who produces and exports tea, under his own brand. He alone has changed the conventional system in the tea industry. Thus,it is considered him as one of the remarkable entrepreneurs in Sri Lanka. Therefore, a detailed exploration of Merrill J Fernando would help to identify the behavior, aspirations, features and the specialties which serve or help to achieve social, environmental and economic development in Sri Lanka. Contribution to the development in a country cannot be attained by an ordinary person. And this broad concept needs to be achieved in terms of social, environmental and economic wise. Simply the study needs to find out why an entrepreneur is important to achieve social, environment and economic development and how an entrepreneur contributes to the development in Sri Lanka. The empirical study of this research will provide the answer on taking Merrill J Fernando as an example. Therefore, the research problem in this study is “how Merrill J Fernando, as an entrepreneur becomes important to the development of Economy, Society and Environment of a country?”         2. LITERATURE REVIEW Modernity of entrepreneurship focus on main five features in entrepreneurship according toKrisciunas (2007). They are Social Responsibility, Competiveness and Progressiveness, Knowledge Generation and Usage, Dynamism and Responsible Entrepreneurship.  Entrepreneurship has been recognized as a strong factor in economic development. The concept of entrepreneurship is decorated by various attributes like innovation, organization building ability, gap-filling function, input completing etc. the persons of these qualities are required to initiative and sustain the process of industrialization. The fact that entrepreneurial ability is a cultivable asset, the supply of which can be generated and enhanced through education, training and opportune climate has focused the attention of policy makers and planners towards entrepreneurship as the desirable and manageable route to economic development It is widely acknowledged that entrepreneurship is critical to the development of knowledge based economy Mohammad and Nimalathasan (2010). In Sri Lankan context, the empirical research conducted in terms of a case study by Fonseka (2008) proves that Merrill Fernando is a great example for a successful entrepreneur and a visionary leader who contributed to the entire society. His research article describes most of the modern entrepreneur concepts and traits though it has not specifically mentioned. This shows the importance of conducting a research on a great personality as Merrill J Fernando, the founder of Dilmah Tea who will be a great example or a perfect fit for the issue stated above.   3. OBJECTIVE OF THE STUDY The major objective of this study is to identify the importance of Merrill J Fernando as an entrepreneur, to the development of Sri Lanka. In addition to that the research paper also identifies the contribution of Merrill J Fernando to the economic, environment and social development of Sri Lanka and identifying the form of entrepreneurship to describe Merrill J Fernando.   4. METHODS Both primary and secondary data was collected using the following methods. The study is mainly based on the interview conducted with Merrill J Fernando and his son Dilhan Fernando. Initially Merrill J Fernando’s secretary was contacted through a direct telephone call to “Dilmah” head office. Following her instructions, a mail was sent to Merrill J Fernando, requesting for an appointment to conduct an interview. The most suitable method of the interview was a structured interview. Therefore, before the interview was conducted a questionnaire was designed to scrutinize data in order to address the research questions. The questionnaire was designed under ten main topics and 50 sub-questions. Mainly the story behind his success, the challenges he faced, the opportunities and threats, growth of MJF group, impact to the society and environment, impact to the economy, leadership style and trait and finally a message to the youth. Sub questions were open ended. The interview was recorded with the permission of Merrill J Fernando. The structured interview with Merrill J Fernando was held for one hour. After the main discussion with him, an informal interview was conducted with his son Dilhan Fernando to identify the future prospects, diversification and innovations of the company under the guidance of Merrill J Fernando. 5. FINDINGS AND DISCUSSION As discussed throughout the analysis it gives an understanding about the contribution to Sri Lanka in terms of economic, social and environmental development in detail. The CSR projects he has conducted by the MJF Foundation has changed the lives of millions of people in Sri Lanka uplifting their standard of living. The huge number of projects conducted by the MJF Conservation, under the aspect of sustainability in terms of, sustainability, bio diversity heritage and knowledge sharing shows his obligation towards the environment and society. The employment creation and generating foreign earning to the country which increases the GDP of the country gives the understanding of the contribution of Merrill Fernando to the economy of Sri Lanka. Dilmah today produces the highest quality tea in the world. His principles of producing tea will never change due to innovations or growth of the country. Being a globally recognized brand itself has bring pride to the country which were relied on conventional bulk tea exporting. The value of such an entrepreneur cannot be under estimated.As a part of innovation Merrill J Fernando has pioneered the first international Tea school.  Dilmah Tea School is a great contribution by Merrill J Fernando to the entire world. It is the first international tea school specially focusing the international top chefs to get trained about the modern techniques and the educating the tea drinkers on tea. Dilmah commenced the first school of Tea at a celebration a celebration of the 21st Anniversary of Dilmah and Merrill J Fernando’s 60th year in Tea. The initiative of the school led to a partnership with the most prestigious culinary institutions in the world. Merrill J Fernando is an entrepreneur with great pride. He is honored as the first person to initiate the world’s first consumer and hospitality training school which is totally different from the rest of the tea training facilities. The desire to educate professionals on preparing and presenting tea with great understanding of the attributes of tea shows the responsibility he has taken to transfer the knowledge to future generations. And today it has achieved great success with the great demand from the foreigners.  The great success of all his companies and the great work he has done up to day proves without any doubt the importance of the entrepreneurs to a country.   6. CONCLUSION To conclude the analysis of the detailed study on Merrill J Fernando in order to identify the importance of an entrepreneur to the development of Sri Lanka by using the conceptual framework is as follows. All the twelve determinants, which were captured from the literature review, were able to identify in the study which proves the importance of an entrepreneur in terms of social, economic and environment development of Sri Lanka. Economic thinking has led Merrill J Fernando to fight with the multinationals, attack the colonial conventional patterns and break the solid barriers to enter in to the global markets. Today he has brought justice to the Ceylon tea by producing tea with integrity and value addition which retain the profits inside the country. The main attribute in the research is about the efficiency of resource utilization. Merrill Fernando has taken the maximum benefit of the natural resource of the country which is tea, by utilizing it in an efficient and effective. The liveliness, quality and variability of the products at Dilmah and the efficiency of the MJF group and his service on transferring the knowledge by the initiation of school of tea proves the dynamism. More over the competitiveness, economic risk in the organisation justifies the dynamism The CSR projects conducted by the MJF foundation proves the obligation to the society by Merrill J Fernando. Employments creation at Dilmah for 1069 people and 25000 people in his plantations, projects and the entire MJF group proves that he has created employment opportunities which indirectly reduce the unemployment rate in Sri Lanka and by enhancing the purchasing power of people.  The Tea Gastronomy and the innovative packaging, Tea school are some of the innovations done by Dilmah. The availability of the research and development Centre which does continuous experiments on white tea, silver tips so on justifies that Merrill J Fernando is committed to do continuous innovation. The fact that Merrill J Fernando has created a globally renowned brand, his engagement in international business, the fact that his competitors are international, the high quality and uniqueness of the product and the generation of international employment proves that Merrill J Fernando can be honored as an “International Entrepreneur”.His great service to Sri Lanka proves that an entrepreneur plays a vital role to the development of Sri Lanka. And his conscience as an entrepreneur is a great example to the entire universe. He had won number of awards in his journey as an entrepreneur. However, the greatest award he has won today is the heartsof people around the whole world.   REFERENCES Amamulaa, M.K., Data One, (2014). Import Export Statistics on Sri Lanka. Ansoff, I. (1957). Strategies for Diversification, Harvard Business Review, 35(5), 113-124. Ashoka, et al (2002). Social Entrepreneurs: Doing Sustainable Development, The Asoka Green Paper for the WSSD. Ceylon Chamber of Commerce. Retrieved from http://www.chamber.lk [Accessed 27 January 2015] Ceylon Tea Board. Retrieved from http://www.pureceylontea.com [Accessed 10 February 2015] Dilmah Annual Report.(2013/2014).Ceylon Tea Services PLC, PeliagodaDilmah. Retrieved from http://www.dilmahtea.com [Accessed 22 January 2015] Nimalathasan, B. (2010). Entrepreneurship: Perspectives and Strategies, Devi Publication, Karaveddy. Drucker, P.F. (1985), Innovation and Entrepreneurship, Reed Educational and Professional Publishing Ltd, Woburn.  Fonseka, D.C. (2008). Visionary Leadership and the Case of Dilmah, Sri Lankan Journal of Management, 14(2),1-17. Hall, J.K., Daneke, G.K., & Lenox, M.J. (2010). Sustainable development and entrepreneurship: Past contributions and future directions, Journal of Business Venturing, 25(5),441-446. Krisciunas, K. &Greblikaitė, J. (2007). Entrepreneurship in Sustainable Development: SME’s Innovativeness in Lithuania, Engineering Economics, 5(4),21-27. Kuckertz, A. & Wagner, M. (2010). The influence of sustainability orientation on entrepreneurial intentions investigating the role of business experience, Journal of Business Venturing, 25, 524-539. Marksick, V. & Watkins, K. (1990). Informal and Incidental Learning in the Work Place, London, Routledge. Miller, A. (1987). New Ventures:  a fresh emphasis on entrepreneurial education, Survey of Business, 23(1),4-9. Mohammad, S. &Nimalathasan, B. (2010). Encouraging Entrepreneurship and its Impact on Economic Development in Emerging Economy: An Overview, University of Jaffna, Sri Lanka. Morris, R. (2011), High Impact Entrepreneurship Global Report, Global Entrepreneurship Monitor, Sponsored by Ernst & Young. Parrish, B.D. (2008), Sustainability-Driven Entrepreneurship, no 9, University of Leeds, United Kingdom. Seelos, C. &Mair, J. (2004), Social Entrepreneurship: The Contribution of Individual Entrepreneurs to Sustainable Development, University of Navvara, Spain.

1. INTRODUCTION Entrepreneurship leads to better performance. All the entrepreneurs extend a considerablecontribution directly or indirectly to the economic development (Faculty of Management Studies and Commerce University of Sri Jayewardenepura, 2013). Entrepreneurship is thereforeconnected with the creation of new business ventures, the introduction of new innovative ideas and technologies, and the readiness to take the risks (Mazzarol, 2004). ‘Knowledge Economy (KE) is an economy that based on knowledge and ideas, in which the key factor of prosperity and economic growth is the superior knowledge capitalization’(Tocan, 2012). Sustainable competitive advantage can be offered through the driving forces of economic growth, productivity growth and resources. There is no any universally accepted definition for knowledge economy. The World Bank (1996) introduced knowledge economy framework which includes four pillars and contributes to the economic growth and development. As a developing country Sri Lanka needs sustainable entrepreneurs who can boost the Sri Lankan economy. Even if one becomes entrepreneur either by education or by inheritance, it is important to know how to survive in a turbulent business environment. The main purpose of this study is to analyse awareness of entrepreneurs about KE when managing entrepreneurial ventures. This study has used a more differentiated approach than earlierstudies which have mainly focused on the knowledge based economy assessment for a country. Therefore this study aims to understand the entrepreneurs’ perception towards KE to make their entrepreneurial ventures a success.   2. LITERATURE REVIEW KBE uses knowledge in the production process as an input to generate knowledge intensive goods and services. In a KBE a firm’s growth significantly depends on three factors such as knowledge accumulation, technical change and the innovative activities (Seddighi, 2012). According to the framework introduced by Seddighi (2012), there is a significant relationship between firm’s core competence and firm’s research and development activities. It is believed that existence of core competence creates the research and development activities to develop core competencies over the time. That is firm’s research and development activities depend on the level of understanding about core competence in a firm.  When contrast with the Singapore KE, Sri Lanka should make stronger its R & D and grow innovations in its universities. Sri Lanka should create an innovative culture with a high protection of property rights. More focus should be given on university and private sector R & D activities (The World Bank, 2008). With the purpose of attracting creative talents, Singapore has created both supportive and encouraging environment to innovation and enterprises. The project called “One North” which launched in 2001 is becoming world class R & D hub for the scientists and entrepreneurs who are working in the biochemical science, ICT and media (The World Bank, 2008). World Bank stated that Sri Lanka should create a research environment similar to Singapore on a smaller scale by encouraging researchers to interact each other. When compared with China Sri Lanka does not have many challenges in developing domestic innovation system due to favorable political regime. ‘Sri Lanka is having one of the most liberal economies in South Asia’ (The World Bank, 2008). What Sri Lanka needs to get from China is that having a closed economy for a longer period will make difficulties to overcome when transforming country in to a KE.New firms creation helps to a country’s economic growth and diversification. As discussed by Mayer (2013 cited by Thornton, 1999) new firms creation can be identified in two main ways. First one is the Supply Side Perspective which is based on the individual entrepreneurs who influenced by the family background, motivation and skills. Second perspective is known as Demand side for entrepreneurship based on the opportunities available in the economy, resources and market situations.Based on the case studies conducted in Hewlett Packard (HP) and Micron Technology firms operated in United States concluded that entrepreneurial firm formation is influenced by the types of products, production process and the corporate culture in an organization (Mayer, 2013).   3. OBJECTIVE This is mainly to carry out micro level analysis to identify link between the business environment and the four micro level performances. This study aims to explore how far micro level KE factors affect to the entrepreneurial ventures. Problem statement of this study can be identified as “What is the perception of entrepreneurs in Sri Lanka on the application of KE at micro level in the business world?”     4. METHODS This study is an exploratory study in the form of a case study. Data strategy was qualitative based on interview based data. Data analysis has adopted descriptive narrative presentation of interview data. The model was developed to be assessed based on four micro level factors introduced by the OECD which has few differences compared with the World Bank framework. Regulatory pillar which explains under World Bank framework is not available in OECD model. Instead of that firms creativeness and entrepreneurship is incorporated to the model. All other three pillars, Human resource, ICT, and innovation, are examined in both models using different variables. These Four micro level factors which are essential to successful KBE at business level were measured using entrepreneurial ventures. Selected business ventures’ situation is assessed through four micro level factors that are crucial to successful KBE. Institutional type of case studies was carried out to analyse the micro level performance of entrepreneurial ventures as measured by the following four pillars. They are 1) Enhancing human capital and realizing its potential, 2) Seizing the benefits of information and communications technology (ICT), 3) Exploiting and diffusing science and technology and 4) Fostering firm creation and entrepreneurship. The data is mainly obtained from a survey based interviews through a detailed questionnaire. Both quantitative and qualitative variables are examined. As secondary sources, annual reports of the selected companies, financial records, published materials, and various types of documents were considered. For the purpose of collecting empirical data, structured survey based interviews were conducted for the selected two entrepreneurs. Purposive sampling technique is used to select the case participants. However entrepreneurs who engage in manufacturing sector are selected. Both entrepreneurs have won national entrepreneurship award given by the Federation of Chamber of Commerce and Industry of Sri Lanka (FCCISL) in recent years. It is the institute who provide best Sri Lankan entrepreneur award annually. Thus detailed questionnaire was used covering all Human capital, ICT, innovation and entrepreneurship aspects of the organizations. Further general view points of the entrepreneurs towards the knowledge economy was examined through semi structured interviews. Conversational recording was taken with the permission of the respondents due to the ethical issues that has to be addressed. To conduct these case studies, two victorious entrepreneurs who run business ventures very successfully were selected randomly. The two entrepreneurs selected were Nature’s Beauty Creation Limited and RaigamPvt Ltd. 5. FINDINGS AND DISCUSSION It was revealed that entrepreneurs in both companies follow good human resource management practices, sound ICT facilities, well established R & D centers and good creative and entrepreneurial environment in the company. Education level maters significantly, when establishing KE framework at micro level. However, even though top management in the NBC and Raigamwere not well aware about the concept of KE, they have implemented relevant four factors to a certain extent within the companies. It is understood that without having such an environment, companies will not be able to survive in today’s competitive world.Both companies admitted that they should have sound ICT facilities to increase the efficiency in operations. HoweverNBC is not an IT based company; therefore it does not want to specialize in ICT facilities. On the other hand Raigam admitted that having geographically dispersed sales staff, it is very important to have good communication system such as PDA technology when managing the sales around the country. Although they have different ideologies in the ICT filed, they have same philosophy in the R & D sector. Both entrepreneurs agreed that without having innovations time to time company will not be survived. In order tocreate new products it is vital to have its own research and development centre. Knowledge creation and dissemination is the main idea in KE. That reflects entrepreneurs always try to create new knowledge; that is new product based on their experiments. This should be matched with the market requirement. If not created new knowledge will not be accepted by the people and it will become a failure product. Therefore, importance of science and technology stream is well understood by both entrepreneurs. Considerable amount is spent annually for the R & D activities to find new knowledge. Entrepreneurs believe that, skilled human resource is needed to improve the efficiency in operations. Especially in the new product development process, major contribution is coming from the top management who has post graduate qualifications. In NBC, science based degree is a quality requirement to enter into the top management. Because company believes that, medicinal plant based production requires high level of quality assurance.       6. CONCLUSION In this case study analysis, it reveals that both firms are well concerned about R & D activities in order to create new knowledge. Companies spend reasonable amount of their revenue for the R & D activities annually.  They believe that, profitability can be improved through the introduction of new products rather cutting their expenses. Therefore, in order to carry out experiments in the laboratory both companies are having good researches. Especially in the NBC, as a herbal cosmetic manufacturing company, they highly concentrate the outcomes of R&D activities. Raigam, as a fast food manufacturing company always tries to create new food items which have both required amount of nutrition and the quality. As per the qualitative analysis, it can be concluded that, management of NBC and Raigam is implementing KE pillars at a certain level within the firms. However, NBC should be more concentrated on the improvements in ICT facilities and should be given more freedom to the employees to suggest new products. That is mainly because; application of ICT facilities in NBC is poor compared to the Raigam in the fields such as monitoring sales people.Both firms have creative entrepreneurial culture which always encourages innovations and new idea. Continuous R & D activities will help to create new products and processes which can be useful to increase the profitability of the firm. Raigam is always doing market research in order to understand the changes in the economy and NBC is more towards to the research on medicinal plants in order to create new herbal cosmetics to attract customers.When considering the entrepreneurs’ perception towards KBE, even though management does not have theoretical knowledge about KE, they practice the same ideology when managing company’s operations. Thus, it is suggested that understanding about KE pillars in more depth will contribute to improve their entrepreneurial ventures. Creation of knowledge is not solely valuable if it is not disseminated throughout the population. Therefore, finding should spread to the economy by protecting its credibility within the firm. However as stated by Samantha, existing administration system of intellectual property is not efficient. Entrepreneurs do not likely to obtain patent rights for their innovations due to the lack of transparency and the protectionism in the administration system. This might be a criticism to enhance the creativity and the entrepreneurship in Sri Lanka.   REFERENCES Armstrong, P., & Tomes, A. (2000). Entrepreneurship in Science: Case Studies from Liquid Crystal Application. Critical Studies in Innovation, 133-147 (18). Ather, S.M., & Nimalathasam, B. (2010). Encouraging Entrepreneurship and Its impact on Economic Development in the Emerging Economy: An over view. In B.Nimalathasan, Entrepreneurship : Perspectives and Strategies. Devi Publication. Ballot, G., & Taymaz, E. (1997). The dynamics of RMS in a micro-to-macro model:The role of training, learning and innovation. Journal of Evolutionary Economics, 7, 435-457. Central Bank of Sri Lanka. (2013). Annual Report.Colombo, Sri Lanka. Faculty of Management Studies and Commerce University of Sri Jayewardenepura. (2013). Selected case studies of National Entrepreneurs in Sri Lanka. International Conference on Business Management (ICBM). Hewapathirana, I. (2014). Bridging, bonding and linking global entrepreneurs: the case of Sri Lanka. Human Resource Development International, 17 (2), 164-182. Kanellos, N.S. (2013). Exploring the characteristics of Knowledge-Based Entrepreneurship in Greek high-technology sectors. Kaya, N. (2006). The impact of human resource management practices and corporate entrepreneurship on firm performance: evidence from Turkish firms. The International Journal of Human Resource Management , 2074-2090. Lan, L., Eliza Ching, Y.T., & Ling Zhao, J. (2009). An Empirical Study of Corporate Entrepreneurship in Hospitality Companies. International Journal of Hospitality &         Tourism Administration, 10 (3). Leydesdorff, L. (2006). While a Storm is Raging on the Open Sea. Regional Development in a Knowledge-based Economy. Journal of Technology Transfer, 31, 189-203. Lundstrom, A., & Zhou, C. (2011). Promoting innovation based on social sciences and technologies: the prospect of a social innovation park. The European Journal of         Social Science Research, 24, 133-149. Mayer, H. (2013). Firm Building and Entrepreneurship in Second-Tier High- Tech Regions.European Planning Studies, 9 (21), 37-41. Mazzarol, T. (2004). Strategic Management of Small Firms:A Proposed Framework for Entrepreneurial Ventures. Mcquaid, R.W. (2002). Entrepreneurship and ICT Industries: Support from Regional and Local Policies. Regional Studies, 36 (8), 909-919. Managing Director, Natur's Beauty Creations Limited. KE Perception of the Entrepreunure.Interviewd on 15.09.2015 by D.J. Peris. Horana, Sri Lanka. Managing Director, Raigam Group of Companes. KE Perception of the Entrepreunure.Interviewd on 21.09.2015 by D.J. Peris. Horana, Sri Lanka. Organisation for Economic Co-Operation and Development (2007). Micro-Policies for Growth and Productivity, Paris Organisation for Economic Co-Operation and Development. (1996). The Knowledge Based-Economy, Paris. Perera, M., Amaratunge, S., & Amarasinghe, H. (2013). An analysis of Knowledge Economy in Sri Lanka : A Regional Perspective. Seddighi, H. (2012). A Model of a Firm's Innovation and Growth in a Knowledge Based Economy. Journal of Knowledge Economy. Suetens, S. (2002). R&D Subsidies and Production Effects of R&D Personnel: Evidence from the Flemish Region.The International Journal of Human Resource Management,    11. Tang, G., Wei, L.Q., E.S., & Y.C. (2014). How effective human resource management promotes corporate entrepreneurship: evidence from China. The International Journal of Human Resource Management, 16. The Department of National Planning. (2010). Sri Lanka The Emerging Wonder of Asia. Ministry of Finance and Planning, Colombo. The kingdom of Raigam. (n.d.). The kingdom of Raigam. Retrievedfrom http://www.raigam.lk [Accessed 02 July 2015] The World Bank (2008). Building the Sri Lankan Knowledge Economy.World Bank Public Information Center, Colombo. Tocan, M.C. (2012). Knowledge Based Economy Assessment. Journal of Knowledge management, Economics and Information Technology. 5. Westeren, K.I. (2008). On the Knowledge Economy. The Journal of Regional Analysis and Policy. 15 World Bank. (n.d.). World Bank. Retrieved from http://www.worldbank.org/en/country/ srilanka/overview.[Accessed 02 December 2015].  

1. INTRODUCTION According to the Central Bank statistics 2009 - 2014, it can be noted that there is a gradual increase in the preference of gold loans by the borrowers as a means of consumer credit, during last 5 years period in Sri Lanka.This increase in gold loans implies several economicoutcomes that can be anticipated in the future in credit market as well as in gold market in Sri Lanka. Corresponding to the gradual increase in preference of gold loans by the borrowers, the lender starts to raise the loan to value ratio or gold loan advances they grant while reducing the interest rates and encouraging more gold loan borrowings by creating a competition in the credit market. Through this encouragement, people who have various borrowing behaviors come in to the market and if most of the borrowers are in a vulnerable position and if the repayment ability is ambiguous, then loan defaulting rate will enhance in this credit channel. When loans are defaulted, lenders try to cover up their loan values through selling out the collateral. Since the common collateral is gold for these types of loans, when increasing supply of the gold, the price of gold will decline while creating a problem to the gold business as well. Gold price decline will not only be affected to the gold business but also for the financial organizations who keep their reserves in gold. They also are punished by declining the value of their gold investments creating a path for a domestic financial crisis. Therefore, apart from the mere credit supply increase in return to borrowers’ preference, lenders must have a good understanding on purpose of borrowing, repayment ability and their borrowing behavior in general to avoid above mentioned type situations. Because if lenders are aware on their borrower, they can adjust their terms and conditions on gold loan and reduce possible losses arise in not repaying. On the other hand, if lenders have a good understanding on borrowing patterns, they can design variety of gold loan products by adjusting tenure, interest rate and loan to value ratio. However, in Sri Lanka, these types of studies are lacking on gold loan market. Thus, through this study, it is expected to examine the characteristics and general borrowing behavior in Sri Lankan gold loan borrowers to render an understanding on their borrowing practices to the lenders by fulfilling that need. In addition to that, it demonstrates the importance of studying the participants and their behaviour in gold loan market to utilize this credit facility effectively in the development of the Sri Lankan economy by identifying the borrowing segments in the gold loan market. Therefore, the results of this research will not only be beneficial for gold loan lenders and financial institutes but also to the policy makers in deploying effective credit sources to the various segments in the society. Therefore, this study provides a clear view on gold loan borrowers and their behavior as a solution for prevailing knowledge deficiency in Sri Lankan gold market.   2. LITERATURE REVIEW Churiwal and Shreni (2012) have carried out a study on Indian Gold loan market examining the features of gold loans, loan interest and gold loan values. The findings of that research reflected that 65 percent of the gold loan market is with rural area in India. The study also discovered that, the organized sector is challenging the large unorganized gold loan market dominated by pawnbrokers and moneylenders, with non-bank financial companies leading the pack due to simpler approval and disbursal processes, flexible products and better accessibility. In contrast to the Indian study, a research conductedbyGrashof (2002) on People’s Bank Pawning and Savings Centers in Sri Lanka discovered that pawning is more common in urban areasAnd, whereas saving is popular in rural areas in Sri Lanka. It also revealed that women make more use of pawning facilities than men in Sri Lanka.Pawning is not only a product for the poorlately; even business people have started to make use of pawning. Pawning has become the most important credit facility in terms of outreach to the poorer population (Grashof, 2002). The credit purpose is not fixed, providing quick and easy access to liquidity for various needs. Discretion is guaranteed as the transaction takes place in a separate room or behind closed curtains (Grashof, 2002).   3. OBJECTIVE OF THE STUDY The main objective of the study is to investigate the consumer credit behavior in Sri Lankan Gold Loan Market; the specific objectives are to assess the characteristics of gold loan borrowers and to assess consumer borrowing behavior in gold loan market.   4. METHODS The target groups of this study are gold loan borrowers. The reason for aiming this sector is that lack of studying the behavior of these gold loan borrowers who have raised the value for gold loans in personal loan market during recent years. The study is mainly based on primary data gathered from a survey. The data was collected with a self-completion questionnaire to maintain the confidentiality and reliability of the information gathered. But the researcher had to interview some respondents with their consent in filling the questionnaire due to language problems. On the other hand, the data has been gathered from a non- probability sampling method: convenient sampling methodwhere those who are willingly participate in this research were selected. Data collection activities has been conducted among sixty gold loan clients on the basis of convenient sampling from Kaduwela area in Colombo district, Western province, Sri Lanka. Eventually, out of sixty distributed questionnaires, two were rejected, due to the problem of incompletion. By conducting this research in a semi-urbanized area as Kaduwela, the results can be generalized for both urban and rural borrowers. The researcher made sure that the sample is consists with gold loan borrowers by distributing the self-completion questionnaires in the premises of six gold loan lending institutes located in Kaduwela area. Gold loans providing institutes can be mainly identified as banking institutes and non-banking institutes and due to inability in accessing to banking pawning divisions because of the security and confidentiality maintained in banking premises, the researcher has used only a sample from private gold loan lending institutes for collecting data.   5. FINDINGS AND DISCUSSION Analyzing the characteristics of the gold loan borrowers, it can be noticed that majority of the borrowers who engaged in gold loans are female while most of the borrowers came under the age limit of 41 -50.  On the other hand, greater part of the borrowers is married and completed their education up to G.C.E. A/L. On top of that, most of the gold loan borrowers are under Rs 15,000 – Rs. 30,000 income slab. According to the survey analysis, it was identified that these borrowers were mainly borrowing for consumption purposes and investment purposes. As per those two purposes, the borrowers’ borrowing behavior is explained under five borrowing influencing variables such as over indebtedness, financial literacy, subjective norm towards consumer credit usage and perceived behavioral control. With the use of regression model, it was proved that there is a significant positive relationship between over indebtedness, financial literacy, subjective norm towards consumer credit usage and perceived behavioral control with the average gold loan advance taken for consumption purposes. Conversely, regression model built up for investment purpose borrowing further demonstrated that there is a relationship between over indebtedness, financial literacy, attitude, towards consumer credit usage and perceived behavioral control and average gold loan advance taken for investment purpose. In addition to that, borrowing topologies introduced by Worton, Grew, &Jessett (2014) on Consumer credit behaviour which is consisted with three borrowing topologies such as Survival borrowing, Lifestyle borrowing and Reluctant borrowing has been used to present the borrowing behaviour of people who take loans for consumption purposes. On the other hand the borrowing behaviour of people who take loans to invest in business is explained by another three borrowing topologies such as Lifestyle borrowing, Reluctant borrowing and Long Investment Borrowing.   6. CONCLUSION In summarizing the above behavioral models, it can be noticeable that the journeys throughout the borrowing topologies will be changed according to the changes arise in the debt level, financial literacy, attitude and norms towards consumer credit usage and the perceived behavioral control of the borrower. In the overall aspect, borrowers who take gold loans for investment purposes possess satisfactory financial management skills and repaying capability than consumption purpose borrowers. Therefore, it can be recommended to prioritize lending for investment purpose borrowers, because it generates more profit to the gold loan lenders while it reduces their risk level. Since those credits are utilized in investments, it will create a value to the economy. In addition to that, it is observed that there is a possibility in promoting gold loans as a source of credit for the development of low and middle income earners’ lives as they are the main income categories who use this source of credit. And, it is important to note that there is a possibility in utilizing gold loans as a source of credit for women empowerment since this credit product records a higher accessibility for women. At the same time, it is important to note that with the promotion of gold loan as a source of credit for women and low income house holders for investment purposes with a parallel change in borrowers’ debt level, attitude and norms towards consumer credit usage, financial literacy and perceived behavioural control will guide them towards higher standard of living. In conversely, borrowing for consumption purposes should be discouraged as it drag them to an over indebted situation.       REFERENCES Anderloni, L., &Vandone, D. (2010). 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