Sri Lanka to roll out 95 billion rupees concessional loan package for MSMEs after Cyclone Ditwah

Sri Lanka’s government is preparing to roll out 95 billion rupees concessional loan package to support micro, small and medium-scale enterprises affected by Cyclone Ditwah, a major storm that disrupted livelihoods and businesses across several regions.

Twelve private banks have applied to join the 3 percent interest loan scheme, which is currently being implemented through State-owned banks. Treasury Director General of Development Finance Manjula Hettiarachchi said agreements with private banks are expected to be signed by January 15, expanding access to relief financing.

The programme aims to assist around 130,000 entrepreneurs impacted by the cyclone and the wider economic crisis. Eligible MSMEs can access working capital loans of up to Rs. 1 million with a six-month grace period and three-year repayment tenure. The Central Bank has also announced a six-month loan moratorium and loan restructuring measures for affected borrowers.