Record Rs. 95 b concessionary business loans approved in 2026: Govt.

Saturday, 3 October 2026 00:34 - - {{hitsCtrl.values.hits}}

Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe

Beneficiaries barred from further concessionary loans for three years
Rs. 5.7 b to micro-enterprises Rs. 16 b to SMEs, and medium-scale businesses get Rs. 3.7 b

The Government has approved Rs. 95 billion in concessionary interest loans for 2026, the highest such allocation in Sri Lanka’s history, Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe said in a statement.

Of the total, Rs. 25 billion has been set aside for the expansion of small and medium-scale enterprises (SMEs), covering businesses from micro-enterprises with an annual turnover below Rs. 20 million to medium-scale firms with a turnover of up to Rs. 1 billion.

By August, 2,569 beneficiaries had qualified for loans under the scheme, Abeysinghe said. Small enterprises have received Rs. 16 billion of the SME allocation, including Rs. 5.7 billion obtained by micro-enterprises, while 169 medium-scale businesses with turnover between Rs. 350 million and Rs. 1 billion have received Rs. 3.7 billion.

Responding to concerns that the loans were favouring larger businesses or certain provinces, he said the program is reviewed monthly by him, the Finance Ministry Secretary and the Department of Development Finance. Regional distribution broadly mirrors the country’s GDP distribution, he said, adding that greater balance would depend on building stronger businesses across the regions.

Beneficiaries will be ineligible for further concessionary financing under the scheme for three years, opening space for new applicants.

Abeysinghe urged prospective borrowers to run formal, financially stable businesses, maintain sound relationships with banks and take responsibility for their financial records and Credit Information Bureau (CRIB) scores. He also advised them to strengthen equity capital and keep monthly records of income, expenditure, assets and liabilities, noting that the Ministry of Industries offers technical assistance to help businesses prepare loan applications.