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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