A programme was held at Parliament to brief Members of Parliament on government assistance available for micro, small and medium-scale enterprises (MSMEs) affected by Cyclone Ditwah.
The briefing was held under the patronage of Deputy Minister of Economic Development Nishantha Jayaweera and organised by the Department of Development Finance under the Ministry of Finance, Planning and Economic Development.
Officials said the government has introduced refinancing schemes and interest subsidy loans to address key barriers to financial access, including high interest rates and the lack of collateral. A total of Rs. 95.6 billion has been allocated for interest subsidy loans in 2026.
State banks have already begun issuing working capital loans to affected enterprises from December 16, with 13 additional private banks expected to join the scheme. Under the programme, banks will receive funds at zero interest from the Treasury and issue loans of up to Rs. 25 million at a 3 percent interest rate, with Rs. 10 billion allocated for 2026.
Separately, loans of up to Rs. 25 million at a 5 percent interest rate will be available through all state and private banks under a business revival facility, with Rs. 25 billion allocated for this scheme.
Officials also briefed MPs on the National Credit Guarantee Institution, which provides collateral coverage for loans. Currently, 67 percent coverage is provided, with 80 percent coverage for women entrepreneurs. MPs raised concerns that the remaining uncovered portion could create practical difficulties for borrowers and called for improvements.
Members further stressed that procedures and information regarding collateral and loan processes are not being clearly communicated to banks and entrepreneurs, highlighting the need for better awareness and coordination.
In addition, officials said a new loan scheme targeting the agricultural sector will commence in the second week of February, offering loans of up to Rs. 5 million based on recommendations from the Ministry of Agriculture, with Rs. 800 million allocated for 2026.
The briefing also covered loan schemes funded by the Asian Development Bank and other interest subsidy programmes, with MPs raising several implementation-related concerns.
Opposition Leader Sajith Premadasa, several ministers and deputy ministers, and MPs from both government and opposition attended the programme, along with senior Treasury, Finance Ministry and Parliamentary officials. (Newswire)