The government has approved an additional allocation of Rs. 7.5 billion under the RE-MSME PLUS Loan Scheme to continue providing financial assistance to micro, small and medium enterprises (MSMEs).

The Cabinet of Ministers approved the proposal submitted by President Anura Kumara Dissanayake, in his capacity as Minister of Finance, to provide the additional funds after the scheme’s initial allocation of Rs. 30 billion was fully utilised by participating financial institutions.

According to the Cabinet decision, the RE-MSME PLUS Loan Scheme was introduced this year by combining the existing RE-MSME Loan Scheme with several other loan programmes aimed at reviving the small and medium enterprise sector.

As of the end of August 2026, projects worth Rs. 4.27 billion had been approved to support businesses affected by the Ditwah disaster, while projects worth Rs. 25.92 billion had been approved for other micro, small and medium enterprises.

The government stated that participating financial institutions have already utilised the entire Rs. 30 billion initially allocated under the programme.

However, financial institutions have reported that approximately Rs. 7.5 billion in additional funding is required for projects that have completed internal evaluations, received loan approvals and are awaiting the disbursement of funds.

Accordingly, the Cabinet has approved the additional allocation to facilitate the continued disbursement of loans under the RE-MSME PLUS scheme. (Newswire)

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The government has approved Rs. 95 billion in concessionary interest loans for 2026, marking the highest allocation of its kind in Sri Lanka’s history, according to Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe.

In a statement, the Deputy Minister revealed that Rs. 25 billion of the total allocation had been earmarked to support the expansion of small and medium-scale enterprises (SMEs), covering businesses with an annual turnover of up to Rs. 1 billion.

He stated that the scheme caters to a wide range of businesses, from micro-enterprises with an annual turnover below Rs. 20 million to medium-scale enterprises with a turnover of up to Rs. 1 billion.

According to Abeysinghe, 2,569 beneficiaries had qualified for concessionary loans by August 2026, describing the progress as a significant achievement for the programme.

Providing a breakdown of the loan distribution, the Deputy Minister said small enterprises had received Rs. 16 billion from the Rs. 25 billion allocation, including Rs. 5.7 billion obtained by micro-enterprises.

Meanwhile, medium-scale businesses with an annual turnover exceeding Rs. 350 million but below Rs. 1 billion had received Rs. 3.7 billion, distributed among 169 enterprises.

Addressing concerns that concessionary loans were being directed mainly towards larger businesses or disproportionately allocated to certain provinces, Abeysinghe said the programme is reviewed monthly by himself, the Secretary to the Ministry of Finance and the Ministry’s Department of Development Finance.

He noted that the regional distribution of loans broadly reflected the country’s GDP distribution, adding that greater regional balance could be achieved by developing stronger businesses across different parts of the country.

The Deputy Minister further highlighted that the 2,569 beneficiaries who obtained concessionary loans would not be eligible to receive further concessionary financing under the scheme for the next three years, creating opportunities for new applicants.

He urged aspiring borrowers to establish formal, financially stable businesses and maintain trustworthy relationships with banks, stressing that entrepreneurs must take responsibility for their financial records and Credit Information Bureau (CRIB) scores.

Abeysinghe also advised business owners to pay greater attention to their equity capital and maintain monthly records of income, expenditure, assets and liabilities to improve their eligibility for bank financing.

He added that entrepreneurs could obtain the necessary technical assistance from the Ministry of Industries to prepare their businesses for loan applications. (Newswire)

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The Government has launched a Multi‑Purpose Loan Scheme to support Sri Lankan migrant workers, enabling them to invest their overseas earnings in housing, education, business ventures, and other financial needs.

According to the Sri Lanka Bureau of Foreign Employment (SLBFE), the scheme is open to Sri Lankans employed abroad who can provide proof of overseas employment contracts and remittance records. 

Applicants must submit documents such as their passport, employment agreement, and proof of income transfers through official banking channels.

Loan facilities are available for purposes including building or purchasing houses, starting or expanding businesses, buying vehicles, and funding children’s education. 

The program is designed to ensure migrant workers can secure long‑term financial stability while contributing to the national economy.

Repayment terms are structured to suit overseas workers, with flexible installment options and competitive interest rates. 

The scheme is being implemented through leading banks including the Bank of Ceylon, People’s Bank, and Commercial Bank, with each institution offering tailored packages under the government framework. (Newswire)

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The Ministry of Industry and Entrepreneurship Development has announced concessional loan schemes for Micro, Small, and Medium Entrepreneurs and industrialists.

Publishing a newspaper advertisement, the ministry announced the SMILE 111 and E-Friend 11 loans, which are two specially designed concessional loan schemes. 

According to the ministry, the loan schemes, which are offered at annual interest rates of 2%, 5%, 6.5% and 8%, are being introduced to support SMEs and industries across Sri Lanka.

“These flagship financial facilities offer access to low-interest loans, tailored to stimulate the manufacturing sector, sustainable industrial development, improve productivity, and strengthen value chains across various sectors,” the ministry added. (Newswire)

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The government has commenced a pledge loan scheme under a concessionary interest rate for Small and Medium-scale (SME) Paddy Millers and Cooperative Societies for purchasing paddy in the 2024/2025 Maha Season, to maintain a reasonable price for farmers.

According to a statement from the Department of Development Finance of the Ministry of Finance, the implementation period of the concessionary loan scheme is 03 January to 15 May 2025. 

The target Group of this loan scheme is Small and Medium-scale (SME) paddy millers and Cooperative Societies, subject to the maximum daily paddy milling capacity of 25MT per day. 

Under this loan scheme, all borrowers can obtain loans at an interest rate of 7% per annum with an amount of Rs.50 million and the respective loan should be repaid within 180 days. 

The total value of the loans to be disbursed by the Banks is Rs. 10,000 million under this loan scheme.

It has also been planned to purchase paddy at a Minimum Purchase Price (MPP) declared by the Department of Agriculture to ensure a reasonable price for paddy harvest by farmers. (Newswire)

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The proposal to use Rs. 2 billion to implement a special loan scheme to remove obstacles for women to engage in economic activities has received a Cabinet nod.

According to the government, it has been observed that women’s participation in Sri Lanka’s economic affairs is at a lower level than in other regional and Asian countries. 

As per the 2022 survey of Sri Lanka’s workforce, thirty-five per cent of the economically active population are women and it shows a significant disparity in the gender contribution rates of economic participation. 

Opportunities for accessing financial resources are limited due to reasons such as women’s limited financial literacy and lack of property or security required to obtain a loan. 

The government pointed out that these have been identified as the main obstacles faced by women entrepreneurs in Sri Lanka. 

According to the decision of the Cabinet in February 2024, a provision of Rs. 20 billion has been allocated to implement an investment scheme to re-strengthen the enterprise sector. 

Therefore, the Cabinet approved the proposal presented by the President to implement a special loan scheme to remove obstacles for women to engage in economic activities by using Rs. 2 billion out of the allocated Rs. 20 billion. (Newswire)

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The new “Manusavi” Migrant Worker Loan Scheme was launched on Monday (Dec 04) together by the Sri Lanka Bureau of Foreign Employment (SLBFE) and the Central Bank of Sri Lanka (CBSL). 

Relevant loan proposal agreements were exchanged between officials of the SLBFE and the CBSL under the patronage of Minister of Labour and Foreign Employment Manusha Nanayakkara. 

According to the SLBFE, the loan can be obtained for starting or expanding a business, buying, constructing or expanding a house, buying land or a vehicle, higher education of children or any other productive purposes.

The SLBFE has allocated a sum of Rs. 5 billion to implement this loan scheme, while the maximum limit of the loan a migrant worker can obtain is Rs. 2 million, and the maximum interest rate that can be charged from the borrower is 8% with a maximum period of 36 months given to repay the money.

A migrant worker is required to maintain a separate or a joint Personal Foreign Currency Account (PFCA) or Savings Account (RSA) in a licensed commercial bank and should have remitted foreign exchange to the respective account (at least within the past three months) to be eligible for the loan scheme. 

To obtain the loan, applications can be forwarded to the respective bank before going abroad or while abroad, while the applicant can authorize a close relative through a power of attorney (POA) to receive the loan amount on their behalf.

Under the system, loans cannot be repaid in Sri Lankan Rupees (LKR), but the loan can be settled in LKR after returning to Sri Lanka upon completion of the foreign employment, to which the prevailing market interest rates will be applied.

Refinancing facilities are provided through the Regional Development Department (RDD) of the CBSL at an annual interest rate of 4% for the following licensed commercial banks that contribute to this initiative:

• Bank of Ceylon
  • People’s Bank
  • Commercial Bank
  • Hatton National Bank (HNB)
  • Sampath Bank
  • Seylan Bank
  • Cargills Bank
  • DFCC Bank
  • National Development Bank (NDB)
  • Pan Asia Bank
  • Union Bank (NewsWire)

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