FINANCIAL CHRONICLE – Three of Sri Lanka’s private commercial banks have already exhausted their current loan quotas for micro, small, and medium enterprises (MSMEs), and the government is looking to make additional allocations, Deputy Minister of Industry and Entrepreneurship Development, Chathuranga Abeysinghe has said.
“Currently, Commercial Bank, HNB, and NDB have fully exhausted their loan quotas. The Ministry of Finance expects to provide new allocations for these banks shortly,” Abeysinghe said in a social media post.
7,100 people had already qualified for loans, he said, encouraging those who meet the requirements to apply.
As of March 10, the government had approved 17.4 billion rupees in loans. Another 267 loans have been approved, so far in 2026, by the National Credit Guarantee Institution.
He said Sri Lanka had allocated its highest-ever volume of low-interest loans for MSMEs through the 2026 budget to boost entrepreneurial capabilities and local production across all sectors, except the retail sales sector where these loan schemes aren’t offered.
25 billion rupees has been allocated under the Energizing MSME scheme, and another 7 billion rupees from the ADB SME lock scheme.
Financing packages include 10 billion under the Ditwah concessionary line, 15 billion rupees intended for paddy cultivation, and 25 billion rupees for agriculture.
An additional 14 billion rupees from the Asian Development Bank (ADB) is due to be released starting in June.
To ensure the funds are not misused, the government has implemented a digital tracking system, Abeysinghe said, which also ensures the loan is processed within 3 months.
The Ministry of Finance and the Ministry of Industry are jointly supervising this process, he said. (Colombo/Mar13/2026)
