People’s Bank launches special relief package to support struggling SMEs

Friday, 12 September 2025 00:16 - - {{hitsCtrl.values.hits}}

People’s Bank has announced a special relief package aimed at reviving Micro, Small, and Medium Enterprises (MSMEs) across Sri Lanka, focusing on businesses with non-performing loans under Rs. 5 million.

It said this timely initiative targets enterprises severely affected by recent economic challenges that were not addressed under previous relief measures.

MSMEs play a critical role in Sri Lanka’s economy, contributing over 52% of Gross Domestic Product (GDP) and employing nearly 45% of the workforce. Despite their significance, many small businesses have faced increasing difficulties in recent years, including rising operational costs, reduced consumer demand, and tighter financial conditions. The special relief package is designed to provide immediate support to these enterprises while improving the bank’s capacity to manage outstanding loans effectively.

The scheme offers considerable interest concessions and flexible repayment options tailored to the borrower’s capacity, based on practical and credible business plans. Accrued interest may also be converted into a new loan at concessionary rates with short-term tenures. Extended repayment flexibility is available, including moratoriums and balloon payments, with repayment terms of up to seven years. For businesses seeking additional capital to restart operations, supplementary financing can be accessed through Government-backed programs or People’s Bank’s SME loan schemes.

To ensure targeted support, eligibility criteria have been clearly outlined. Borrowers must have total loans not exceeding Rs. 5 million, with loans classified as non-performing on or after 1 April 2019 and submit a viable business plan. Applications must be submitted on or before 31 December 2025 and will be carefully evaluated to prioritise those most likely to benefit, reflecting the bank’s commitment to ethical lending and institutional integrity.

Applications can be submitted through any branch within People’s Bank’s island-wide network and will be assessed by the dedicated Business Revival Unit. The initiative is not only intended to rejuvenate struggling MSMEs but also to strategically reduce the bank’s exposure to non-performing loans. By combining financial support with responsible oversight, People’s Bank aims to strengthen the resilience of Sri Lanka’s MSME sector and contribute to broader economic recovery, reinforcing its role as a key partner for small businesses across the country.