December 11, Colombo (LNW): The government has announced a revamped financial support initiative aimed at helping micro, small and medium-sized enterprises regain their footing after the recent wave of natural disasters.
The new facility, titled RE–MSME PLUS, brings together several existing state-backed lending programmes—previously known as SMILE-III, E-FRIEND-II and RE-MSME—into a single, more flexible scheme intended to fast-track recovery and encourage investment.
According to officials, Cabinet approval has been granted to launch the upgraded scheme early next year. The authorities expect that roughly 130,000 business owners will benefit from a mix of rapid-release financial assistance and longer-term concessional support.
The initiative is designed not only to offer relief but also to strengthen the resilience of small-scale industries that form the backbone of the local economy.
Under the planned arrangement, eligible enterprises will have access to government-funded loans at an annual interest rate of just 3 per cent over a three-year period. The scheme will also include a grace period of up to six months, with borrowing limits set at Rs. 250,000 for micro-level ventures and Rs. 1 million for small and medium-scale businesses.
Officials say these terms are meant to ease cash-flow pressures and give affected entrepreneurs enough breathing space to rebuild operations.
Cabinet has also endorsed the continuation of the RE–MSME – Disaster Relief programme, with the President—acting in his role as Minister of Finance—greenlighting both initiatives. Authorities hope the combined effort will accelerate recovery in sectors hit hardest by the recent adverse weather, while encouraging businesses to adopt more sustainable and disaster-resilient practices in the long run.
