The government has allocated Rs. 95 billion in concessionary-interest lending for 2026 — the largest allocation of its kind, according to Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe.
Abeysinghe set out the programme’s structure and progress in a statement, reported by Newswire.
How the money is split
Of the overall allocation, Rs. 25 billion is earmarked for the expansion of small and medium-scale enterprises, covering businesses with annual turnover up to Rs. 1 billion. The scheme spans micro-enterprises turning over less than Rs. 20 million a year up to medium-scale firms at the Rs. 1 billion ceiling.
By August 2026, 2,569 beneficiaries had qualified, which the Deputy Minister described as significant progress.
Within the Rs. 25 billion tranche:
- Small enterprises had drawn about Rs. 16 billion
- Micro-enterprises had obtained about Rs. 5.7 billion
- Medium-scale businesses with turnover above Rs. 350 million but below Rs. 1 billion had received about Rs. 3.7 billion
On regional concentration
Addressing concerns that the loans were going mainly to larger businesses or were concentrated in particular provinces, Abeysinghe said the programme is reviewed monthly by himself, the Secretary to the Ministry of Finance and the ministry’s Department of Development Finance.
He said the regional distribution broadly tracks the country’s GDP distribution, and that greater regional balance depends on building stronger businesses across more of the country.
Conditions on borrowers
The 2,569 beneficiaries will not be eligible for further concessionary financing under the scheme for three years, which Abeysinghe said creates room for new applicants.
He urged prospective borrowers to formalise their businesses, maintain sound Credit Information Bureau (CRIB) records, pay closer attention to equity capital and keep monthly records of income, expenditure, assets and liabilities. Technical assistance to prepare loan applications is available through the Ministry of Industries, he said.
Context
The Rs. 95 billion figure covers the full-year 2026 concessionary credit allocation for MSMEs and agriculture, which has been disbursed through state and private banks over the course of the year rather than approved as a new package this week. Earlier reporting on the same allocation put utilisation above 80% by the early part of the third quarter.
This article rests on a single outlet’s account of the Deputy Minister’s statement; LankaNewz found no other newsroom carrying it at the time of publication.
