Govt Opens Rs. 95 Billion Financing Push for Businesses in Record Credit Drive
COLOMBO, October 2, 2026 — Sri Lankan businesses are set to gain access to a record Rs. 95 billion in concessionary financing in 2026, with Rs. 25 billion specifically allocated to small and medium-sized enterprises (SMEs) as the government moves to expand affordable credit for business investment and growth.
The unprecedented financing allocation is aimed at helping businesses secure lower-cost funding to expand operations, invest in productive capacity and strengthen their financial position, according to Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe.
The Rs. 25 billion SME facility covers businesses ranging from micro-enterprises with annual turnover below Rs. 20 million to medium-scale companies generating up to Rs. 1 billion in annual turnover.
By August 2026, 2,569 businesses had already qualified for concessionary financing, highlighting strong demand for lower-cost credit among Sri Lanka’s business community.
Small enterprises have secured Rs. 16 billion of the SME allocation, including Rs. 5.7 billion for micro-enterprises, while medium-sized businesses with annual turnover between Rs. 350 million and Rs. 1 billion have received Rs. 3.7 billion, distributed among 169 companies.
Abeysinghe said the programme is being reviewed monthly by the Ministry of Industries, the Ministry of Finance and the Department of Development Finance to monitor lending and address concerns over the distribution of funds.
He said the regional allocation of financing broadly reflects the distribution of economic activity, while acknowledging that stronger businesses need to be developed across more parts of the country to improve regional access to finance.
The government is also seeking to broaden the pool of beneficiaries. Businesses that have already received concessionary financing will be excluded from further concessionary lending under the scheme for three years, allowing new applicants to access the facilities.
For businesses seeking funding, Abeysinghe stressed that financial discipline will be critical. Entrepreneurs have been urged to maintain accurate monthly records of income, expenditure, assets and liabilities, strengthen equity capital and maintain sound relationships with banks.
He also highlighted the importance of maintaining a strong Credit Information Bureau (CRIB) record when seeking bank financing.
The Ministry of Industries will provide technical assistance to entrepreneurs preparing their businesses and documentation for loan applications, according to the Deputy Minister.
The Rs. 95 billion programme represents a major expansion of state-backed credit support, putting affordable financing at the centre of the government’s efforts to encourage business expansion, entrepreneurship and private-sector investment in 2026.
