Tuesday Jan 13, 2026
Tuesday Jan 13, 2026
Tuesday, 13 January 2026 02:19 - - {{hitsCtrl.values.hits}}
The Government yesterday announced that it is preparing to roll out a Rs. 95 billion concessional loan package for micro, small and medium-scale enterprises (MSMEs), to support businesses affected by Cyclone Ditwah.
A total of 12 private sector banks have applied to participate in the 3% concessional loan scheme, expanding a relief program currently being disbursed through State-owned banks.
Addressing the media, Treasury Department of Development Finance Director General Manjula Hettiarachchi said yesterday that the move is in line with Government policy to strengthen entrepreneurship and export-led growth.
As part of this initiative, the Government aims to support around 130,000 entrepreneurs impacted by Cyclone Ditwah and the broader economic crisis.
He said the Memoranda of Understanding (MOUs) with the private banks are expected to be signed by Thursday (15), enabling wider access to relief financing for affected customers.
“Private banks also have customers who are affected. We hope to sign the MOUs by 15 January,” Hettiarachchi said.
Under the program, eligible borrowers will receive working capital loans up to Rs. 250,000, while small and medium enterprises (SMEs) are eligible for loans of up to Rs. 1 million with a six-month grace period and a three-year repayment tenure, at a concessional interest rate of 3%.
However, the Director General said only registered or formally maintained businesses will qualify for the facility.
Loans can be accessed through participating State banks, including the People’s Bank, Bank of Ceylon, and Regional Development Bank, with additional banks to be added once the MOUs are finalised.
He stressed that the program is designed to stabilise businesses, protect livelihoods, and sustain economic recovery, particularly in disaster-affected regions.
In parallel, the Central Bank of Sri Lanka (CBSL) has introduced a six-month loan moratorium and allowed loan restructuring without penal interest for affected borrowers.
