Sri Lanka’s Ministry of Industries and Entrepreneurship Development has approved over Rs. 31 billion in SME loans during the first quarter of 2026, supporting more than 5,000 businesses, according to its Q1 progress report released on Friday.
The ministry said the SME soft loan process had been simplified in collaboration with the Ministry of Finance. The lending push comes as an estimated 200,000 small and medium enterprises have ceased operations across the country, underscoring the scale of recovery still needed.
On the policy front, the ministry reported completing a National Business Registry Framework with World Bank support, finalising an 11-Pillar SME Framework and National SME Policy, and advancing the Industry Promotion Act to its final stages. A DITWA industry recovery programme — linked to the post-Cyclone Ditwah reconstruction effort — was also completed during the quarter.
The Industrial Development Board conducted impact assessments across 243 large and medium industries. Infrastructure work continued on the Beruwala boat launching pad for marine and fisheries industries, and a new student facility at the Sri Lanka Institute of Textile and Apparel (SLITA) was opened.
Looking ahead, the ministry announced a high-level Investment Forum planned for June 2026, to be organised in partnership with the World Bank, Export Development Board, Board of Investment, and Port City Colombo. Sri Lanka Expo 2026 has been rescheduled to Q1 2027, with a virtual platform launched in the interim.
The Rs. 31 billion lending figure offers a data point against claims that banks are blocking SME access to the government’s Rs. 95 billion concessional credit line.
