Sri Lanka allocates Rs. 95 Billion in low-interest loans to boost entrepreneurship

Sri Lanka has opened Rs. 95 billion in concessional loans at around 5 percent interest to support entrepreneurs and industrial development, the Deputy Minister of Industry and Entrepreneurship Development, Chathuranga Abeysinghe, announced today (January 13).

In a Facebook post published today (January 13), Abeysinghe highlighted that access to capital has been one of the main challenges for Sri Lankan entrepreneurs. He noted that while both owner’s capital and borrowed capital are important, several issues have affected borrowed capital, including high interest rates, short repayment periods, lack of grace periods, insufficient collateral, and limited public awareness about concessional loans and eligibility.

The Deputy Minister said the present government has addressed these problems through continuous discussions between the Ministry of Industry and Entrepreneurship Development and the Ministry of Finance throughout 2025. He emphasized that, for the first time in the country’s history, a large-scale loan allocation of Rs. 95 billion has been made for industrialization at a low interest rate, aiming to support startups and established businesses alike.

Abeysinghe urged entrepreneurs to learn about these loan schemes, prepare their businesses, and apply through banks, noting that while the Ministry of Industry provides guidance, the final decision on loan approvals and collateral rests with banks. He added that 1,248 entrepreneurs have already obtained loans without collateral, thanks to reforms made last year.

To prevent misuse, the Ministry of Finance has introduced a digital system to monitor loan allocations, including separate limits for small loans and restrictions on repeated borrowing by the same individual.

Abeysinghe encouraged business owners to maintain proper accounts, pay taxes, and build organized and sustainable businesses, reinforcing the government’s goal of moving toward a production-based economy.