📈 President Pushes Formalization & Concessionary Credit for SMEs

President Anura Kumara Dissanayake has directed officials to fast-track the integration of the informal sector into the formal economy while expanding relief for businesses impacted by Cyclone Ditwah. The move aims to protect viable enterprises from collapse and improve national productivity. • Relief & Credit Schemes 3% Interest Rate: Concessionary credit under the RE-MSME Disaster Relief scheme is being accelerated for disaster-hit businesses. Loan Limits: Micro-enterprises can access up to Rs. 250,000, while SMEs are eligible for up to Rs. 1,000,000 for a 3-year tenure. Target Group: The government is targeting support for approximately 130,000 entrepreneurs to aid recovery. • Formalization & Sector Support SME Registration: A new mechanism is being developed to encourage unregistered SMEs to formalize, granting them better access to state support and banking facilities. Flexibility: District Secretaries will report on unregistered businesses to ensure technical non-compliance does not disqualify them from essential disaster relief. Agriculture & Housing: Crop compensation payments are being expedited, and construction for fully damaged houses is set to begin on January 9 in Anuradhapura and Kurunegala. • Economic Outlook The President emphasized that post-disaster interventions must transition businesses toward higher productivity rather than just restoring pre-disaster levels. Officials were cautioned against inefficient utilization of development funds, which could delay broader economic recovery targets.