By: Staff Writer
November 09, Colombo (LNW): Sri Lanka’s small and medium enterprise (SME) entrepreneurs numbering around 77000 have been given some life line by providing access to loan facililities under a new scheme initiated under the 2025 budget, finance ministry disclosed.
It has fulfilled the financial requirements, the biggest challenge for small business owners providing loans without pledging property or other assets as loan security and this facility was based on the business’s potential rather than on collateral. .
Director General of the Department of Development Finance of the Ministry of Finance, Manjula Hettiarachchi revealed that out of the Rs. 200 billion allocated in this year’s budget to provide financial assistance to SME entrepreneurs, loans amounting to Rs. 120 billion have already been approved.
He added that that the remaining Rs. 80 billion be swiftly channeled through the banking system to make the funds available to beneficiaries without delay.
He further stated that one of the major challenges faced by SMEs and other entrepreneurs is the lack of sufficient capital to start or expand a business under affordable interest rates.
Another key issue, he noted, is the absence of adequate collateral to secure such loans. To address both challenges, the government, through the Department of Development Finance, has introduced special loan schemes in collaboration with 13 state and private banks and has also established a National Credit Guarantee Institution (NCGI).
Under this scheme, individuals already operating successful businesses can obtain working capital loans of up to Rs. 25 million at an interest rate of 7 percent, with a 12-month grace period for interest payments. The loan repayment period has been structured over 10 years.
Loans under this scheme range from Rs. 500,000 to Rs. 25 million and are available across all sectors. To qualify, SME owners must show their business is viable when applying through banks.
Additionally, those currently classified as Non-Performing Loans (NPLs) and unable to meet existing loan repayments can access up to Rs. 15 million at an 8 percent annual interest rate. Borrowers are exempt from paying interest for the first six months, and repayment can be made over five years.
The government has officially launched the National Credit Guarantee Institution on June 2, 2025, SME entrepreneurs to access loans without providing collateral, making it easier for small businesses to grow.
It is offering a 67 percent guarantee to banks, allowing them to provide loans based on the business’s potential rather than on collateral.
The institution is a joint effort by the Asian Development Bank (ADB) and Sri Lanka’s Ministry of Finance. It operates as a public-private partnership with the government owning 90 percent and the remaining 10 percent held by 13 private banks and financial institutions.
The ADB has contributed US$ 50 million in capital and technical support to establish the institution.
Chief Executive Officer of the National Credit Guarantee Institution, Jude Fernando, revealed that so far, Rs. 3.5 billion worth of guarantees have been issued, enabling 633 loan facilities. He added that the institution plans to further expand its services
SMEs Gain Fresh Hope as Govt implements Collateral-Free Loan Scheme
Dear Comrade Aravinda..
Dear Comrade Aravinda,
Sometimes – thankfully not all the time – your team simply asks for negativity instead of enjoying the democratic luxury of a significant vote base. This majority came your way principally since the people of Sri Lanka had grown rather weary of the triumphalism espoused by the Rajapaksa clan and their cohorts. The people were quite weary for another reason: corruption was the new endemic, and the people feel abused by their elected representatives. It had become beyond a joke.
Take for example the Yahapalanistas. Faizer Mustapha was the Minister in charge – he proposed the Provincial Council changes and by the time it was time to vote on that in parliament, the same man voted against what he was responsible for! Truly, Comrade it was beyond a joke. Somehow the people don’t like it when that happens.
Comrade Aravinda: your Minister in Charge of Cultural and Religious Affairs is on the face of it trying to hitch a free ride on the ‘equality’ bandwagon. The negativity though is to you and your party.
His comparison of the newly elected Mayor of New York with the appointment of the Nilame role in Kandy is totally out of context. Your Minister suggests that it should be possible for a non-Buddhist to be the holder of that position.
Come on Comrade! What kind of absolute non-starter positions is that? Are we to have a Hindu woman to be the head of the Mosques in Sri Lanka? Or a Muslim – maybe Azaath Salley or Rauf Hakim or MSM Thowfeek or Rishad – to take over the role of Archbishop of Colombo?
Espousing the cause of equality and togetherness and even communal harmony is truly marvellous – especially as we all know that communal harmony has been fractured for a while thanks to a bunch of terrorists who found it convenient to latch on to the aspirations of the Northern people who ever only wanted equality of opportunity.
To make absurd statements – whilst holding high office – suggests that the Minister knows zero about the subject or in the full knowledge of the system, chose to be mischievous like that other Doctor now newly in parliament. (This fellow is either letting off steam or asleep in the chamber)
Comrade Aravinda – the Mahanayakes must have been delighted on the appointment of the Maligawa Chief – the Diyawadana Nilame, Pradeep Nilanga Dela. The reason or one such reason would be the unhappiness shown by the Senior clergy in terms of the effort by Tourism assets, to highlight the LGBT community.
Many without really understanding the system, feel that it would be a breakdown of the cultural values in Sri Lanka. Nothing of course can be further from that but one must consider that for traditional believers in the entire concept of Buddhism any such move to apparently promote LGBT travellers is nothing new, but it is a new scheme to raise awareness of the tolerance levels for LGBT travellers in Sri Lanka.
In that context the fears and concerns of all the religions in Sri Lanka will be assuaged by the election of Nilanga Dela. It is best Comrade Aravinda if you told your Ministers to be a bit more thoughtful before opening their traps.
At the end of the day the perception is this, “A Secular State: A core principle in many leftist ideologies is that the government should not use religion as a constitutive device for holding society together and should avoid enforcing purely religious norms (such as specific dietary laws). For a majority Buddhist nation the palpable fear is that even though Buddhism is give its rightful place in the Constitution, there is a fear that such values may well be eroded.
My warmest wishes to you,
Faraz Shauketaly
Team NewsLine
Diplomatic Efforts Underway to Secure Return of Sri Lankan Fishermen Detained in Maldives
November 09, Colombo (LNW): Formal discussions have commenced to facilitate the repatriation of Sri Lankan fishermen who were recently detained in Maldivian waters on allegations of drug trafficking.
Minister of Public Security Ananda Wijepala confirmed that the Ministry of Foreign Affairs is actively supporting the process, noting that an official request has already been submitted to the Maldivian authorities seeking the fishermen’s return.
In parallel, a specialised unit from the Police Narcotics Bureau has been dispatched to the Maldives to assist with the ongoing investigations.
The fishermen were taken into custody after the authorities intercepted a Sri Lankan multi-day fishing vessel in Maldivian waters, where suspected narcotics were allegedly found on board.
Officials emphasised that both countries are cooperating closely to ensure the matter is resolved promptly while adhering to legal protocols.
Related Stories: https://lankanewsweb.net/archives/142213/maldivian-coast-guard-seizes-sri-lankan-vessel-carrying-massive-drug-haul/
Foreign Minister Explores Healthcare Partnerships During Visit to Saudi Arabia
November 09, Colombo (LNW): Foreign Minister Vijitha Herath held discussions with senior executives of the Dr Sulaiman Al Habib Medical Group, one of the Middle East’s most prominent healthcare networks, during his official visit to Saudi Arabia this week.
The talks centred on strengthening bilateral cooperation in the field of healthcare, with particular focus on investment opportunities in Sri Lanka’s growing medical sector.
Both parties explored prospects for collaboration in medical tourism, healthcare infrastructure development, and technology transfer.
Minister Herath also toured one of the group’s flagship hospitals, which features cutting-edge medical technology and artificial intelligence-based healthcare systems.
He commended the institution’s commitment to innovation and efficiency, noting that several Sri Lankan professionals have played a vital role in developing the technology used by the group through its Colombo-based development centre.
New “Plastic Loop” Project Launched to Tackle Waste in Colombo’s Canals
November 09, Colombo (LNW): A pilot initiative designed to curb plastic pollution in Colombo’s waterways was launched on November 07 near the Nawala canal in Sri Jayawardenepura Kotte, marking a significant step in the city’s efforts to keep its drainage systems and rivers free of plastic waste.
The project, part of the national Clean Sri Lanka programme, is being implemented with financial assistance from the PLEASE project. The newly introduced “Plastic Loops” are floating barriers engineered to capture plastic debris carried through major canals before it enters rivers or eventually reaches the ocean.
Officials explained that the Colombo region’s network of 14 main canals and connecting waterways has long suffered from blockages caused by discarded plastic and other non-biodegradable waste—problems that often worsen during heavy rainfall and contribute to urban flooding.
The new system, they said, aims to provide an environmentally sustainable and cost-effective solution to this challenge.
The launch ceremony was attended by several senior government figures, including Deputy Minister of Urban Development Eranga Gunasekara, Deputy Minister of Public Security and Parliamentary Affairs Sunil Watagala, Deputy Minister of Environment Anton Jayakody, and the Mayor of Sri Jayawardenepura Kotte, Arosha Athapaththu.
They were joined by key officials from the Clean Sri Lanka Secretariat and the Presidential Office, including Additional Secretary S. P. C. Sugishwara, Director of Environment Anjula Premarathna, and Director of Coordination Dasun Wijesekara, who expressed confidence that the initiative could be expanded citywide once its effectiveness is evaluated.
Environmental advocates at the event noted that if successful, the “Plastic Loop” concept could become a model for other urban areas grappling with similar pollution and drainage issues, signalling a progressive shift towards cleaner, more resilient cities.
Army Intelligence Tips Lead to Major Drug and Wallapatta Busts in Southern Sri Lanka
November 09, Colombo (LNW): Swift coordination between military intelligence and law enforcement agencies has resulted in two major operations uncovering large-scale narcotics and illegal forest product trafficking in the south of the island, officials confirmed yesterday.
Acting on intelligence provided by the Sri Lanka Army, officers from the Colombo Organised Crimes Division carried out a decisive raid in the Mitiyagoda–Godagama area on November 08.
The operation led to the arrest of six suspects and the seizure of 5.42 kilogrammes of heroin, with an estimated street value of around Rs. 75 million. Investigators also recovered more than Rs. 10.8 million in cash believed to be linked to the drug trade.
The suspects are currently in police custody, while the Galle District Anti-Narcotics Unit has taken over the investigation.
In a separate operation conducted in the Kotapola area of Matara, Army Intelligence officers teamed up with Deniyaya Wildlife officials to intercept a group suspected of smuggling wallapatta (Gyrinops walla), a rare and highly valuable fragrant wood used in the production of agarwood. Three residents of Deniyaya were arrested with 110.45 kilogrammes of wallapatta, worth an estimated Rs. 662 million.
Authorities believe both incidents are linked to broader organised networks engaged in illegal resource extraction and drug trafficking. Security sources said the operations underscore the growing importance of intelligence-led policing and inter-agency cooperation in dismantling such criminal enterprises.
Further inquiries are underway to trace the origins of the confiscated goods and identify additional suspects connected to both rackets.
Records Tumble as Young Swimmers Shine at Inter-International Schools Championship
November 09, Colombo (LNW): The opening day of the 30th Inter-International Schools Swimming Championship 2025 got off to an electrifying start at the Sugathadasa Swimming Pool Complex on Saturday (08), with several long-standing records rewritten in a remarkable display of young talent.
Leading the charge was 15-year-old Jayden de Silva of Stafford International School, who stunned spectators by breaking a decade-old record in the Boys’ Under-16 100m backstroke.
The national squad swimmer clocked an impressive 1:04.25 to secure gold, surpassing the previous mark of 1:05.84 set by Vihanga Perera of Gateway College in 2015.
De Silva’s teammate, Shaqib Riyaj, kept Stafford’s winning momentum alive by storming to victory in the Boys’ Under-20 50m breaststroke. Riyaj set a new meet record of 30.87 seconds, improving on the 31.36-second benchmark held by Wycherley International’s Vinul Senanayake from last year.
Gateway College’s rising star Hashel Senarath made waves in the Boys’ Under-14 division, rewriting two meet records within hours. He clinched the 200m individual medley title with a time of 2:30.88—breaking a record unchallenged for seven years—before powering through the 50m butterfly in 28.38 seconds to erase a nine-year-old mark.
Not to be outdone, Okitha Gunasekara of Elizabeth Moir School smashed the Boys’ Under-20 200m individual medley record with a commanding swim of 2:14.78, while Lyceum Ratnapura’s Ometh Pathirana claimed the Boys’ Under-10 100m freestyle crown in 1:15.38, shaving precious milliseconds off the previous record.
Lyceum Ratnapura’s Visakya Dias also made her presence felt, breaking two Under-12 records—one in the 100m freestyle with a time of 1:08.90 and another in the 50m breaststroke with 39.04. Lyceum Panadura’s Sandini Nihinsa added to the excitement by setting a new Girls’ Under-10 100m freestyle record of 1:20.75, while Sasha Rajapakse of The British School powered to gold in the Girls’ Under-16 100m freestyle, rewriting the record books with a brilliant 1:02.01.
The day closed with cheers echoing across the pool complex, setting the stage for what promises to be an unforgettable weekend of fierce competition and record-breaking performances.
Health Minister Orders Immediate Recruitment to Tackle Shortage of Nursing Lecturers
November 09, Colombo (LNW): Health and Mass Media Minister Dr Nalinda Jayatissa has directed officials to fast-track the recruitment of nursing lecturers in response to a serious staffing gap across nursing colleges nationwide.
At present, only 220 lecturers are serving in nursing education institutions, although the approved cadre is 395 — leaving a shortfall of 175.
The shortage has reportedly placed mounting pressure on training programmes and affected the smooth functioning of several nursing schools.
The issue was taken up during a meeting held with the Nursing College Principals’ Association, where Minister Jayatissa stressed the urgent need to strengthen teaching capacity in the sector.
He noted that the deficit in qualified lecturers could have long-term implications for healthcare delivery, particularly at a time when the demand for trained nurses continues to rise.
Following the discussions, the Minister instructed ministry officials to resume stalled recruitment processes without further delay. He further ordered that pending examinations and selections for eligible candidates be completed within the next two months to ensure that new appointments can be made promptly.
Central Bank Tightens Vehicle Loan Rules with New Lending Caps
November 09, Colombo (LNW): The Central Bank of Sri Lanka has introduced stricter borrowing limits for vehicle financing, directing banks and financial institutions to enforce new maximum loan-to-value (LTV) ratios from 8 November onwards.
Under the revised framework, loans or leasing facilities for the purchase or use of commercial vehicles must not exceed 70 per cent of the vehicle’s value, while facilities for private vehicles will now be capped at 50 per cent. The move forms part of the Central Bank’s broader macroprudential measures aimed at ensuring responsible lending and curbing excessive credit exposure in the motor sector.
The Central Bank, acting in its role as the country’s Macroprudential Authority, has issued these directions to licensed commercial and specialised banks, finance companies, and registered leasing establishments. Officials said the latest decision follows a comprehensive review of market conditions and risk factors linked to vehicle financing.
The new structure replaces the more detailed four-tier categorisation introduced in July, which had set separate ratios for cars, three-wheelers, and other vehicle types. The simplified classification now consolidates all non-commercial vehicles—including cars, vans, and three-wheelers—under a single category.
According to the Central Bank, the revision is expected to promote greater financial discipline among lenders and borrowers, reduce speculative demand in the motor market, and align credit growth with the country’s overall economic stability objectives.
Financial institutions have been advised to ensure full compliance with the new lending limits and to update their internal credit evaluation processes accordingly.
Maldivian Coast Guard Seizes Sri Lankan Vessel Carrying Massive Drug Haul
November 09, Colombo (LNW): In a major maritime operation, the Maldivian Coast Guard has apprehended six Sri Lankan fishermen aboard a vessel allegedly transporting a large quantity of narcotics, including nearly 300 kilogrammes of heroin and crystal methamphetamine.
Authorities confirmed that the interception took place following a joint intelligence-sharing effort, with crucial information provided by the Sri Lanka Navy leading to the successful seizure.
The vessel was reportedly operating in international waters when it was tracked and stopped by Maldivian naval units.
Preliminary investigations suggest that the illicit cargo may be connected to a well-known Sri Lankan drug trafficker identified by the alias “Dehibale Malli,” who is believed to have links to several transnational smuggling operations in the Indian Ocean region.
Security officials in both countries are said to be coordinating further inquiries to uncover the broader network behind the shipment, which is suspected to be part of a larger trafficking route spanning from South Asia to the Maldives.
The detained crew and the confiscated narcotics have been handed over to Maldivian law enforcement authorities for further questioning, while regional naval forces have reportedly heightened surveillance to prevent similar smuggling attempts in the coming weeks.