New Rs. 80Bn Loan Scheme Launched Amid Massive MSME Cyclone Losses
- CNL Reporter
- December 9, 2025
- Banking and Financial, News
- Cyclone, Sri Lanka
- 0 Comments
Sri Lanka will launch a Rs. 80 billion loan programme for new entrepreneurs in January, even as more than 92,000 MSMEs have been hit by the recent cyclone, raising questions about economic priorities. Industry Minister Sunil Handunneththi said the initiative, funded through Budget 2026, will be jointly administered by the Finance Ministry and the banking sector to ensure targeted lending.
Officials reported that around 28,000 MSMEs suffered severe or total damage, with an estimated 350,000 workers affected by disrupted operations. Business groups warn that without immediate recovery financing, many enterprises risk permanent closure.
The Ministry will also introduce a National Database for Industrialists and expand collateral-free loans for registered craftsmen. Meanwhile, National Paper Company Ltd. announced increased production following recent reforms.
The government faces growing pressure to balance long-term entrepreneurship promotion with urgent MSME recovery needs.
