January 12, Colombo (LNW): The Development Finance Department is preparing to roll out a new low-interest loan programme aimed at strengthening micro, small and medium-sized enterprises, in line with policy directions issued by the government, Director General Manjula Hettiarachchi disclosed.
Addressing a briefing, Hettiarachchi underscored the pivotal role played by entrepreneurs in driving national economic growth. He revealed that Rs. 95 billion has been earmarked this year to support concessional lending, noting that smaller businesses are central to the country’s ambition of raising export earnings to around 36 billion US dollars by 2026.
The facility, to be implemented in partnership with the banking sector, includes a dedicated component known as “RE-MSME – Disaster Relief”. This scheme is intended to assist business owners who have been affected by Cyclone Ditwah as well as those still struggling with the broader economic downturn.
Around 130,000 entrepreneurs are expected to benefit, with loans offered at a highly subsidised interest rate of 3 per cent per annum.
Under the proposed structure, micro-level enterprises will be able to borrow up to Rs. 250,000, while small and medium-scale businesses may access financing of up to Rs. 1 million. Repayment will be spread over a three-year period, with a six-month grace window built in to allow businesses time to recover and regain stability.
Eligibility will be limited to enterprises that are formally registered or maintain recognised business records. Applications can be submitted through participating state and development banks, including the People’s Bank, Bank of Ceylon and the Regional Development Bank, with further financial institutions expected to join the scheme.
