More than 80% of the Rs. 95 billion allocated by the government for financial assistance to Micro, Small and Medium Enterprises (MSMEs) and the agricultural sector in 2026 has already been disbursed as loans, according to the Ministry of Finance.
The government allocated nearly Rs. 95 billion this year for targeted loan schemes aimed at supporting MSME development, paddy cultivation and agricultural businesses. More than Rs. 75 billion had been utilized by the beginning of the third quarter of 2026.
The loan programmes are administered by the Development Finance Department of the Ministry of Finance, Planning and Economic Development in collaboration with 15 state and private banks. Their progress is reviewed monthly to identify implementation issues and ensure transparency.
Several schemes have also been introduced to address the difficulties faced by small businesses in obtaining collateral. The government has facilitated collateral-free lending through the Sri Lanka Credit Guarantee Institution, in line with its national economic policy.
Under the MSME schemes, the Re-MSME Plus programme has disbursed around Rs. 25.99 billion to 2,645 beneficiaries, exceeding its initial allocation of Rs. 25.7 billion. The Comprehensive Disaster Relief Loan Scheme has provided around Rs. 8.06 billion to 3,966 beneficiaries, while Rs. 3.53 billion has been released under the SME Improvement Financial Project's revolving loan programme.
The government has also placed special emphasis on women and young entrepreneurs, with at least 20% of revolving MSME loan funds earmarked for each group. Concessionary loan facilities have also been introduced for businesses affected by the Diyathova cyclone and previous economic crises.
In the agricultural sector, the New Sapiri Loan Scheme, or Sarusara, has provided approximately Rs. 25.94 billion in cultivation loans to more than 50,000 beneficiaries covering 34 crop varieties.
Meanwhile, the Odapana loan scheme has provided around Rs. 11.56 billion to small and medium-scale rice millers and cooperative societies to purchase paddy at guaranteed government prices. The scheme has supported the purchase of around 70,000 metric tonnes of paddy.
The government says the loan programmes have reached all 25 districts, with more than 70% of the funds being distributed outside the Western Province, supporting agricultural and business activity particularly in the Northern and Eastern provinces.
