Wednesday Dec 31, 2025
Wednesday Dec 31, 2025
Wednesday, 31 December 2025 00:24 - - {{hitsCtrl.values.hits}}
President and Finance Minister Anura Kumara Dissanayake
By Charumini de Silva
The Cabinet of Ministers at their last meeting for the year 2025 held on Monday approved the implementation of a new “Comprehensive Disaster Relief Loan Scheme” to support entrepreneurs affected by cyclone Ditwah, expanding relief beyond micro, small and medium enterprises to also include large-scale businesses.
Speaking at the weekly post-Cabinet meeting media briefing yesterday, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said the decision follows Cabinet approval granted on 10 December 2025 to implement the existing ‘RE–MSME–Disaster Relief’ loan scheme aimed at assisting micro, small and medium-scale entrepreneurs (MSMEs) whose businesses were disrupted by calamities.
“Under that scheme, affected micro entrepreneurs are eligible for working capital loans of up to Rs. 250,000, whilst small and medium-scale entrepreneurs (SMEs) can obtain up to Rs. 1 million. These loans are offered at a concessionary annual interest rate of 3%, repayable within three years, including a six-month grace period, through the Bank of Ceylon, People’s Bank and the Rural Development Bank,” he explained.
Recognising the need to further extend relief and widen access through private sector participation, he said the Cabinet approved the introduction of the new Comprehensive Disaster Relief Loan Scheme. The new scheme will allow affected entrepreneurs to obtain working capital loans from licenced commercial banks and licensed specialised banks at the same concessionary interest rate of 3% per annum.
Under the expanded scheme, micro entrepreneurs will be eligible for loans of up to Rs. 250,000, SMEs up to Rs. 1 million, and medium and large-scale entrepreneurs up to Rs. 25 million. All loans will be recoverable within three years, with a six-month concessionary period.
“The Government expects to allocate Rs. 5 billion for the implementation of the program,” he added.
Dr. Jayatissa also clarified that the loan facility will not require collateral and will come into effect from 1 January 2026.
He noted that the initiative is aimed at restoring business activity, safeguarding livelihoods and accelerating economic recovery in areas impacted by disasters.
The proposal to this effect was submitted by President Anura Kumara Dissanayake in his capacity as the Finance, Planning and Economic Development Minister.
