In a major relief measure for Small and Medium Enterprises (SMEs) battered by the recent cyclone, the Ministry of Finance has announced a refinancing scheme for business loans up to Rs. 25 million. Eligible businesses can now restructure their debt at concessionary interest rates of 2-3%, significantly lower than prevailing market rates.
State Minister of Finance emphasized that this liquidity injection is vital to prevent mass closures in the manufacturing and retail sectors. The scheme will be executed through state banks and is expected to benefit over 5,000 enterprises within the first quarter, ensuring that temporary cash flow disruptions do not turn into permanent insolvencies.
References:
- Ministry of Finance Sri Lanka: https://www.treasury.gov.lk/
- Department of Development Finance: https://www.treasury.gov.lk/web/department-of-development-finance/section/development-finance
