New Solution for Defaulted SMEs to Access Additional Loans

 Deputy Minister of Finance, Dr. Harshana Suriyaapperuma, confirmed that a solution has been devised to address the challenges these SMEs face in accessing new financial support.

Under current banking regulations, individuals who default on loans up to the third phase are classified as defaulters and, as such, are ineligible to apply for new loans. 

However, the newly introduced solution allows these defaulted SMEs to apply for additional loans. The application process will now require recommendations from both the Institute of Chartered Accountants of Sri Lanka and the Ministry of Industries.

Dr. Suriyaapperuma assured that the allocation of Rs. 5 billion from this year’s budget, designated for SMEs, will be distributed smoothly to those businesses that meet the new criteria. The Deputy Minister stressed the importance of defaulted SMEs engaging with the Institute of Chartered Accountants and the Ministry of Industries to secure the necessary recommendations for loan eligibility.

In line with the government’s commitment to revitalizing the SME sector, a priority list will be created to ensure that funds are distributed efficiently. The goal is to allocate the Rs. 5 billion within the next nine months, with the intention of benefiting the national economy by providing much-needed financial support to SMEs that have faced challenges in repaying their loans.

This new initiative marks a significant step in assisting SMEs, ensuring they have access to the resources required to recover and grow in the current economic landscape.