More than Rs. 75 billion of the Rs. 95 billion allocated by the Government for concessional loan schemes targeting micro, small and medium enterprises (MSMEs) and agriculture has been disbursed by the first half of the third quarter of 2026, the Ministry of Finance said.
The programmes, implemented by the Department of Development Finance under the Ministry of Finance, Planning and Economic Development through 15 State and private banks, are aimed at strengthening MSMEs, supporting agriculture and expanding access to finance across all regions of the country. Of the total allocation, Rs. 55 billion has been earmarked for direct support to small and medium-scale entrepreneurs. The Government has also placed emphasis on sectors with high economic and foreign exchange potential, including tourism, information technology and agriculture.
The loan schemes provide financing of up to Rs. 25 million at an interest rate of 5% under Government-funded programmes, while loans supported by the Asian Development Bank can reach Rs. 50 million at an annual interest rate of 6%. Special attention has been given to women and young entrepreneurs. At least 20% of loans under the Small and Medium Enterprises Revolving Loan Scheme are required to be provided to women entrepreneurs, with another 20% reserved for young entrepreneurs.
The Government has also introduced special assistance for businesses affected by Cyclone Ditva and the recent economic crisis. Under the Disaster Loan Scheme, working capital loans of up to Rs. 25 million are available at 3% interest. By the end of July, Rs. 8 billion had been disbursed to 3,966 affected entrepreneurs, with more than 90% being micro and small-scale businesses. Meanwhile, 70 entrepreneurs classified as non-performing borrowers have received Rs. 235 million in working capital loans, while 342 MSMEs have resumed operations after restructuring their loans.
Agriculture has also received significant support. Under the New Sapiri or Sarusara Loan Scheme, loans are available for 34 crops, with around Rs. 26 billion already disbursed against the 2026 target of Rs. 25 billion. The Government has further strengthened support for paddy production and procurement. Around Rs. 11 billion has been provided to paddy millers, enabling the purchase of approximately 70,000 metric tonnes of paddy.
The National Credit Insurance Corporation has also facilitated collateral-free lending, with 2,143 loans worth nearly Rs. 14 billion issued against collateral valued at about Rs. 9.65 billion. More than 70% of total loans have been distributed outside the Western Province, reflecting the Government’s objective of ensuring wider regional access to finance.
Source: Daily News
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