Namal Rajapaksa Writes to President on Lending Difficulties Faced by Businesses
15-Oct-2026.
Namal Rajapaksa, National Organiser of the Sri Lanka Podujana Peramuna (SLPP), has written to the President requesting that policy measures be introduced in the 2027 Budget to address the major difficulties faced by the business community and small and medium-sized enterprises (SMEs) in obtaining credit facilities from banks.
The letter states that both existing business owners and aspiring entrepreneurs require bank loans to expand their businesses or establish new ventures. However, even individuals who previously experienced difficulties in repaying loans but have since settled their outstanding debts in full continue to face considerable obstacles when applying for fresh credit.
Although the Credit Information Bureau does not place individuals on a “blacklist”, historical information relating to loans that have already been repaid may remain on credit reports for up to five years. This can adversely affect an applicant’s present ability to obtain credit, the letter points out.
Rajapaksa has also referred to international practices that could serve as models for reform.
In Malaysia, the central credit information system updates a borrower’s status promptly once a loan has been fully repaid, while particular emphasis is placed on the borrower’s repayment performance over the preceding 12 months.
Against this background, the letter calls for several measures to be introduced through the 2027 Budget:
Updating Credit Information Bureau reports within five working days after a loan has been fully repaid.
Clearly recording settled loans as “fully repaid”.
Issuing guidelines to banks to assess loan applications on the basis of current income and repayment capacity, rather than relying solely on past credit difficulties.
Reviewing, by 2027, the period for which historical information is retained in Sri Lanka’s credit reports, taking international best practices into account.
Introducing a “second-chance credit scheme” to help small and medium-sized enterprises that have settled all their outstanding liabilities resume business operations.
Rajapaksa has requested that these measures be considered as part of the Government’s policy response in the 2027 Budget.
