INSUBCONTINENT EXCLUSIVE:
commitment to facilitate the revitalization of Small and Medium Enterprises (SMEs), the Ministry of Finance, Planning and Economic
Development says.Issuing a statement in this regard, the Finance Ministry highlighted that in order to provide support to this sector, a
relief period has been extended until December 31, 2025
For SMEs with borrowings below Rs
SMEs with borrowings between Rs
50 million were granted an extension until September 30, 2025, while those exceeding Rs
50 million received a deadline extension until June 30, 2025, to access assistance, the statement noted, adding that these benefits are
available exclusively to SMEs that initiated discussions with banks before the March 31, 2025, cutoff date.Furthermore, the Finance Ministry
stated that since the initiation of the relief program on December 15, 2024, key government agencies, including the Presidential
Secretariat, Ministry of Finance, Planning and Economic Development, the Ministry of Industry and Entrepreneurship Development, the Central
monitoring efforts that some SMEs had not approached banks for discussions
that it was noted that SMEs engaged with banks successfully secured relief benefits, which included interest reductions and extensions to
that their members are willing and ready to assist such SMEs, the ministry added.In the recently approved national budget, the government
20 billion) as investment and working capital financing
15,000 million for performing and non-defaulting SMEs and Rs
5,000 million for defaulting SMEs with revival potential.The challenges relating to disbursement to non-performance sector was discussed
extensively by the Ministry of Finance, Planning and Economic Development, the Ministry of Industry and Entrepreneurship Development
part of the solution, SMEs that are to be reviewed by the Ministry of Industry and Entrepreneurship Development are channeled to banks for
Disbursement is subject to Central Bank issuing guidelines, supported by a reporting and recognizing framework developed by the Institute of
20 billion facility is expected to ease urgent investment and working capital financial needs of SMEs, the ministry expressed, noting that
the government is committed to ensuring the timely disbursement of these funds.Additionally, in a press release dated January 15, 2025, the
Ministry announced additional measures for SMEs to ensure sustainability, of which the Advisory Committee was already established in
Planning and Economic Development, the Ministry of Industry and Entrepreneurship Development, the Central Bank of Sri Lanka, the Sri Lanka
Mechanism when recommending SMEs eligible to access the Rs
This mechanism will also be shared with banks to promote sustainable lending practices.However, the Finance Ministry assured that these
and enhance their contribution to GDP.
