Govt. Rolls Out Rs. 95 Bn Concessionary Credit for Entrepreneurs 📈

The Government has launched a series of reforms to address credit bottlenecks, aiming to transition Sri Lanka toward a production-based economy by improving access to capital for industrial ventures. • Key Financial Details: A Rs. 95 billion concessionary loan facility has been allocated for 2026. Loans are offered at a significantly low interest rate of approximately 5%. Focus is on long-term industrial development through debt financing. • Addressing Barriers: Tackles high interest rates, short loan tenures, and lack of collateral. Following 2025 reforms, 1,248 entrepreneurs have already accessed collateral-free loans. New focus on easing credit access specifically for the start-up sector within the year. • Governance & Compliance: A digital mechanism via the Finance Ministry will monitor fund allocation to prevent misuse. Borrowers are required to maintain formal accounts, fulfill tax obligations, and present viable business proposals. While the Ministry approves projects, final viability and collateral decisions remain with commercial banks.