Financial Relief Package Increased for Entrepreneurs Affected by Disasters

31-Dec-2025

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The Government has decided to increase financial assistance provided to entrepreneurs affected by disasters, with the aim of rapidly revitalising the country’s business sector.

Accordingly, Cabinet approval was granted at the meeting held on 10 Dec to implement the “RE–MSME Disaster Relief” loan scheme to rehabilitate disaster-affected micro, small and medium-scale entrepreneurs.

Under this scheme, working capital loans will be provided through the Bank of Ceylon, People’s Bank and Regional Development Bank at an annual interest rate of 3 percent, with a six-month grace period and a three-year repayment period. Micro entrepreneurs will be eligible for loans of up to Rs. 250,000, while small and medium-scale entrepreneurs may obtain up to Rs. 1 million.

It has been identified that the scheme should be further expanded with the participation of private banks in order to extend benefits to all entrepreneurs, including large-scale businesses affected by disasters.

Accordingly, a proposed loan scheme titled the “Expanded Disaster Relief Loan Scheme” has been planned, enabling all disaster-affected entrepreneurs to obtain working capital loans through licensed commercial banks and licensed specialised banks at an annual interest rate of 3 percent, with a six-month grace period and a three-year repayment period. Loan limits are set at up to Rs. 250,000 for micro enterprises, up to Rs. 1 million for small and medium enterprises, and up to Rs. 25 million for medium and large-scale enterprises.

A financial allocation of Rs. 5 billion is expected for this scheme. Cabinet approval was granted for the proposal submitted by the President in his capacity as Minister of Finance, Planning and Economic Development.