A programme to brief Members of Parliament on the benefits provided by the Government to small and medium-scale entrepreneurs affected by the Ditwah cyclone was held on 20 January at the Parliamentary premises.
The programme, held under the patronage of Economic Development Deputy Minister Nishantha Jayaweera, was conducted under the direction of the Department of Development Finance under the Ministry of Finance, Planning and Economic Development.
Officials pointed out the solutions provided by the Government for the main barriers to financial access, namely, high interest rates and the lack of collateral. They stated that, as solutions to high interest rates, a re-financing loan scheme implemented through Government or development partners’ funds, and interest subsidy loans, have been introduced, and that Rs. 95,686 million has been allocated for these interest subsidy loans for the year 2026.
Accordingly, officials informed that, from 16 December, three State banks have already commenced issuing working capital loans required for the rapid restart of micro, small, and medium-scale enterprises affected by the Ditwah cyclone. They further stated that 13 more banks, including private banks, have expressed willingness to enter into agreements to provide these loans. They also noted that the Ministry of Finance, Planning and Economic Development will provide funds to banks at 0% interest, and that banks will issue loans of up to Rs. 25 million at an interest rate of 3%. Accordingly, Rs. 10,000 million has been allocated for this purpose for the year 2026.
Furthermore, under the loan facility for the revival of micro, small, and medium-scale enterprises, loans up to Rs. 25 million can be obtained at 5% interest through all State and private banks, and Rs. 25,000 million has been allocated for this purpose for the year 2026, officials noted.
In addition, discussions were held regarding the operations of the National Credit Guarantee Institution, which has been established as a solution to the issue faced by entrepreneurs in providing collateral when obtaining loans. The Chairperson of the institution stated that, at present, collateral coverage of 67% is provided for the relevant loan amount, and that 80% collateral coverage is provided for women entrepreneurs. Members pointed out that providing collateral coverage for only 67% of the loan amount, leaving 33% uncovered, poses a practical difficulty, and therefore requires attention.
Members also emphasised that, when obtaining these loans, the correct procedures and information regarding collateral are still not properly communicated to the relevant banks and entrepreneurs, and stressed the need for accurate communication.
Officials further stated that loan facilities aimed at improving the living standards of the agricultural community and enhancing the contribution of the agricultural sector to the Gross Domestic Product will commence in the second week of February. Under this scheme, loans of Rs. 5 million are to be granted based on the recommendation of the Ministry of Agriculture, Livestock, Lands and Irrigation, and Rs. 800 million has been allocated for this purpose in the year 2026.
In addition, Members were briefed on loan proposal schemes implemented through Asian Development Bank funding and other loan schemes offering interest subsidies, and the issues raised by Members regarding these schemes were discussed at length.
A number of Ministers, Opposition Leader Sajith Premadasa, several Deputy Ministers, and many Members of Parliament from both Government and Opposition participated in this programme. A group of officials including Deputy Secretary to the Treasury A.K. Seneviratne,
Development Finance Department Director General Manjula Hettiarachchi, National Budget Department Director General Jude Nilukshan, Assistant Secretary General of Parliament Hansa Abeyratne, and Director (Legislative Services) and Director Communication (Acting) of Parliament M. Jayalath Perera also attended the event.