Sri Lanka will introduce a consolidated loan program to support micro, small and medium-scale entrepreneurs affected by recent disasters, the government announced, as part of a wider effort to revive the MSME sector.
The proposed scheme, named RE–MSME Disaster Relief, brings together several existing concessionary loan facilities, including SMILE III for industrial and production investments, E-FRIEND II for environmentally friendly financing, and the current RE–MSME program financed by the government. The combined initiative will be implemented as RE–MSME PLUS starting in 2026.
Officials said the scheme is expected to provide both immediate and medium-term financial assistance to about 130,000 entrepreneurs. Loans will be offered at an annual interest rate of 3 per cent, with a concessionary period of up to six months. Under the program, micro enterprises may borrow up to 250,000 rupees, while small and medium-scale businesses will be eligible for loans up to 1 million rupees.
The Ministry of Finance said the new framework aims to help businesses that were devastated by the recent calamity and ensure long-term resilience in the MSME sector. The Cabinet of Ministers has approved the proposal submitted by the President, in his capacity as Minister of Finance. (Newswire)
