Sri Lanka extends support to businesses impacted by Cyclone Ditwah

The Ministry of Finance, Planning and Economic Development of Sri Lanka has issued a new circular to provide relief to micro, small, and self-employed businesses affected by the emergency situation caused by Cyclone Ditwah.

This initiative builds on Circular No. 08/2025, introduced to restore livelihoods disrupted by the disaster.

The government programme to support communities impacted by the cyclone was initially launched through Budget Circular No. 08/2025 dated December 5, 2025. To expand and improve the delivery of assistance, additional circulars, No. 08/2025(i) dated December 20, 2025, and No. 08/2025(iii) dated January 22, 2026 have been issued.

Relief under the new circular includes:

1. Assistance for Individual, Small, and Micro Businesses

• A one-time grant to restore businesses damaged by the disaster.
• LKR 200,000 for businesses registered with the Ministry of Industry.
• LKR 200,000 for businesses registered with the Divisional Secretariat.
• LKR 50,000 for unregistered home-based businesses operating from a permanent structure.
• LKR 50,000 per unit for unregistered production industries, including greenhouses.
• LKR 25,000 for temporary business setups, such as mobile and street vendors.

2. Assistance for Business Premises Owners

• A grant of LKR 500,000 for business building owners who opt for assistance without a damage assessment.
• A grant of up to LKR 5,000,000 for owners who choose assistance after a damage assessment, based on the assessed value of the building.

3. Loan Facilities for Business Recovery

• Loans ranging from LKR 250,000 to LKR 25,000,000 at 3% interest, with a six-month grace period and a repayment period of three years, to help affected businesses restart operations.
• Investment loans of up to LKR 25,000,000 at 5% interest, with a 12-month grace period and repayment over ten years, for reconstruction and long-term business recovery.

The Ministry emphasizes that these measures aim to restore business operations quickly and support the economic recovery of communities affected by Cyclone Ditwah.