MSME Relief Schemes Face Scrutiny after Cyclone Ditwah
The Government’s assistance programmes for MSMEs affected by Cyclone Ditwah came under scrutiny at a recent parliamentary seminar, amid criticism that recovery support has been slow to reach affected businesses.
Deputy Economic Development Minister Nishantha Jayaweera and Finance Ministry officials briefed MPs on measures introduced to address MSME challenges, including limited access to credit and high interest rates. Officials said Rs. 95.7 billion has been allocated for interest subsidy loans in 2026, while three State banks began issuing cyclone recovery working capital loans from 16 December 2025.
The Finance Ministry has also allocated Rs. 10 billion for low-interest lending and Rs. 25 billion for MSME revival loans next year. However, MPs noted that data on actual loan disbursements and beneficiary numbers has not been publicly disclosed.
Concerns were also raised over collateral requirements and lack of awareness among affected MSMEs.
