People’s Bank provides financial assistance to support distressed customers and businesses

People’s Bank Deputy General Manager – SME, Development and Microfinance Wickrama Narayana

People’s Bank, one of Sri Lanka’s leading state-owned commercial banks, has taken steps to provide concessions and financial support to strengthen and uplift small and medium-sized businesses (SMBs) affected by the recent Cyclone Ditwah. Amid almost every disaster that has impacted Sri Lanka, People’s Bank has always taken steps to uplift the people of this country, not just based on profit, but through fully understanding its responsibility as a responsible state-owned bank.

Accordingly, People’s Bank, with the advice and support of the CBSL and Ministry of Finance, has launched a special program to uplift customers and businesses affected by this disaster. Following are excerpts of a discussion with People’s Bank SME, Development and Microfinance Deputy General Manager Wickrama Narayana, who elaborates on the bank’s efforts.

Q: The sudden cyclone that hit the island affected many individuals and businesses. In your opinion, what is the main challenge entrepreneurs are faced with in this situation?

A: If we look at this disaster that our country has faced, it is different from the decades of war and the COVID crisis. Now this has happened. After this disaster, we can now start from here. Here, businesses could have been damaged in several ways, one of which is the damage to property.

For example, if they are completely washed away, if the building is damaged, they have to rebuild it. In addition to this, the majority have a working capital requirements. They need to cover future expenses, buy raw materials, pay water bills, and electricity bills.

Entrepreneurs now need to assess their capital and working capital requirements. The next problem is whether they have the money to repay the loans id they take them. So, for many of those problems, People’s Bank has introduced a special program under the guidance of the Central Bank of Sri Lanka and Ministry of Finance.

Q: Could you elaborate on the financial and non-financial assistance offered by People’s Bank to uplift the affected individuals and businesses?

A: There are two sets of solutions in the system introduced by the Central Bank of Sri Lanka for this. Accordingly, the existing capital loan amount and interest of the current borrowers can be completely unpaid for a period of three to six months. Or, the capital loan amount can be delayed only by paying the interest.

During this loan suspension period, no interest rate higher than the relevant contractual interest rate will be charged, and no interest will be charged on the deferred interest amount accumulated. This also applies to personal loans.

The second is to obtain investment capital or working capital loan to cover the damage to their business. For this, the customer must have a good assessment of the damage caused. After receiving the loan request, the bank officials study it and decide on the loan amount to be granted. This is offered at a maximum concessional interest rate of 9% and can be paid within two years.

Applications for these loans must be submitted by borrowers to the banks in writing or via email before 15 January 2026.

In addition, the collection of cheque bounce fees, stop payment fees, late fees, loan restructuring/rescheduling fees and penalty interest on all credit facilities of affected customers has been suspended until 31 January 2026.

Q: Has the People’s Bank also introduced a special loan scheme for entrepreneurs who have suffered losses?

A: In addition to the direction of the Central Bank of Sri Lanka, the government has introduced a loan scheme by allocating funds from the Ministry of Finance. This is being implemented by only three state-owned banks, including the People’s Bank.

Although the aforementioned loan amount is applicable to all personal and business loans, this is applicable only to micro, small and medium-sized enterprises. Micro businesses with an annual turnover of up to Rs. 20 million will be provided with loans of up to Rs. 250,000 and SMEs with an annual turnover of up to Rs. 1 billion will be offered loans of up to Rs. 1 million.

This is available only for working capital requirements of two months. After obtaining the Grama Seva certificate, the bank officers examine the business and disburse this loan. This is provided at a concessional interest rate of 3%, and the repayment should be done within three years including a capital grant period of six months if required. In some cases, even if the customers apply for this loan from all three banks, the loan can be obtained from only one bank.

Q: Usually, to get a loan from a bank, you need to submit account records and documents. Will those who have lost them during this crisis receive relief?

A: The government’s primary objective in introducing this loan scheme is to restore the country’s economic process. Since these loans are planned to be disbursed very quickly and in the current situation, it is not necessary to submit all the documents at the initial stage as in other cases.

If you do not have a National Identity Card due to a disability, even a Grama Niladhari certificate is sufficient to apply for this. The banks have your account statements and credit bureau information.

However, to obtain a loan, it is mandatory to prepare an investment or working capital estimate.

For this, you must have a good understanding of the current situation, assets and liabilities, and goals of the business. You can seek the assistance of our loan officers for this. You can submit documents as soon as possible.

People’s Bank has also established a ‘Business Revitalisation Unit’ to revive micro, small and medium-sized enterprises facing problematic situations.

Q: Finally, what message does the bank send to the people affected by this disaster?

A: You have the strength to emerge from this crisis better than before. We also have the ability to bounce back as a country. If you have any concerns or need advice about restarting your business, please contact our Head Office or Regional Head Office Credit Units. People’s Bank stands ready to provide any support you may need.