Some valuable information.. that may be useful to SMEs

Current Relief Status (2024–2025)

New measures were introduced to further assist SMEs whose loans became non-performing after April 2019:

  • Parate Execution Suspension: The temporary suspension of public auctions for properties of defaulting SMEs has been extended through March 31, 2025.
  • Business Revival Units: Borrowers are encouraged to initiate discussions with their bank's Business Revival Unit by March 31, 2025, to reschedule loans based on repayment capacity.
  • Eligibility Cap: These relief measures typically apply to SMEs with an annual turnover below Rs. 1 billion.

Reported Misconduct by Bank Managers

According to statements made by the Deputy Minister in March 2026, branch managers have used several excuses to deny relief to eligible SMEs:

  • False "Quota Over" Claims: Managers incorrectly told customers the facility's quota was exhausted.
  • Utilization Reality: In reality, a large portion of the relief remained unutilized, with officials noting that branch resistance was often motivated by a desire to protect branch profit margins.
  • High-Interest Upselling: Some branches attempted to push customers toward their own high-interest internal loan schemes instead of the government-subsidized options.
  • Exaggerated Timelines: Managers claimed the approval process would take months, whereas the Ministry of Finance typically responds to recommended applications within two weeks.

Recommended Actions for SMEs

If you encounter these issues at a local bank branch, the Ministry of Industries has provided specific bypass instructions:

  • Bypass Uncooperative Branches: Do not rely solely on the branch manager if they claim the quota is over or discourage your application.
  • Contact Regional Officers: Reach out directly to Industrial and Entrepreneurship Development Officers in your local area to facilitate the application.
  • Appeal to the CBSL: If your application is rejected or disputed, you have the right to appeal to the Director of the Financial Consumer Relations Department (FCRD) at the Central Bank of Sri Lanka.

The government has emphasized that while some officials may be difficult, the funds are available and the "quota over" excuse is often a tactic to prioritize bank profits over SME recovery.

Would you like the contact details for the Industrial Development Officers in your specific district to bypass your bank branch?

The reports you heard are accurate. On March 31, 2026, Deputy Minister of Industries and Entrepreneurship Development
Chaturanga Abeysinghe
publicly criticized certain bank branches for blocking access to the Rs. 95 billion government-subsidized credit facility.

While branch managers claimed "quotas were over," only 18.3% of the relief had actually been utilized. This resistance was reportedly a tactic by some branches to protect their internal profit margins or to push customers toward the bank's own high-interest loan schemes.

How to Bypass Uncooperative Bank Branches

If a local manager denies your request or claims funds are unavailable, the Ministry of Industries recommends the following steps:

  • Meet Regional Officers: Directly contact the Industrial and Entrepreneurship Development Officers in your area. They are authorized to facilitate and recommend applications, bypassing uncooperative bank branches.
  • Escalate to the Finance Ministry: Once a bank recommends an application, the Ministry of Finance typically responds within two weeks. Delays longer than this are often at the branch level, not the government level.
  • File a Formal Complaint: Contact the Financial Consumer Relations Department (FCRD) of the Central Bank of Sri Lanka via their hotline at 1935 or email fcrd@cbsl.lk if your eligible application is unfairly rejected.

Contact Points for Assistance

Organization Contact Info Purpose
Industrial Development Board (IDB) IDB Head Office: 011 260 5326 Assistance with SME project reports and regional officer details.
Ministry of Industries 011 243 5248 / Directory General inquiries on the Rs. 95 billion credit facility.
Regional Service Centers Western (Colombo): 011 244 8463 Direct regional support to bypass branch-level blocks.

Regional Support Offices

If your local bank branch claims the "quota is over," you should contact the Industrial Development Board (IDB) regional office for your district. These offices are specifically tasked with recommending your application directly to the Ministry, proving that funds are still available.

Western Province

  • Colombo District Office : Kachcheri Complex, Colombo. (Tel: 011 281 5009)
  • Gampaha District Office : Kachcheri Complex, Gampaha. (Tel: 033 222 2909)
  • Kalutara District Office : New Shopping Complex, Galle Road, Kalutara South. (Tel: 034 222 601)

Central & Southern Provinces

  • Kandy District Office : National Housing Secretariat Building, Yatinuwara Veediya, Kandy. (Tel: 081 220 5619)
  • Galle District Office : Matara Road, Unawatuna, Galle. (Tel: 091 222 7034)
  • Hambantota District Office : Dehigalanda, Ambalantota. (Tel: 047 222 5468)

Northern & Eastern Provinces

  • Jaffna District Office : District Secretariat Office (2nd Floor), Jaffna. (Tel: 021 222 2421)
  • Trincomalee Office : Department of Rural Industries, Selvanayagapuram. (Tel: 026 222 2152)

Additional District Office Contact Directory

  • Kurunegala 037 222 3212, New District Secretariat, 2nd Floor, Kachcheri Rd
  • Kegalle 035 222 3124, 24, Winston Wickramasinghe Mw
  • Kilinochchi 021 228 3754, Old Kachchery Building
  • Vavuniya 024 222 2274, Kachchery Complex
  • Mannar 023 225 1599, District Secretariat
  • Matale 066 222 3160, 132, Malwatta Road

Direct Escalation Contacts

  • Deputy Minister Chathuranga Abeysinghe: deputy.minister@industry.gov.lk
  • Industrial Development Board (IDB) Head Office: 011 260 5326 / 011 260 5327
  • Central Bank Help Desk (FCRD): Call 1935 to report banks that are prioritizing their own high-interest internal schemes over government-subsidized ones.

High-Level Escalation Points

  • Hon. Deputy Minister Chathuranga Abeysinghe: deputy.minister@industry.gov.lk
  • Director (Regional Development), IDB: Mr. S.A.G. Senanayake – 011 260 5380
  • Central Bank Complaint Hotline: Dial 1935 to report branch managers providing false quota information.
  • Ministry SME Loans Division: 011 239 0142

What to Bring

  1. Proof of Local Registration.
  2. Financial Impact Statement.
  3. Bank Interaction Record (Name of manager, date of rejection).

1. General Eligibility & "Basic Proof"

If you are not formally registered with the Registrar of Companies, banks are required to accept a copy of your application for registration as "basic proof," provided it has been accepted by a local government authority.

  • Target Groups: MSMEs, start-ups, and even businesses currently in the Non-Performing Loan (NPL) category.
  • Excluded Sectors: Most concessionary schemes exclude trading, leasing, and renting businesses.

2. SMILE III (Revolving Fund) Details

This is a long-standing scheme for industrial and manufacturing sectors.

  • Maximum Loan: Up to Rs. 25–30 million.
  • Interest Rate: Typically 8% per annum.
  • Repayment: Up to 10 years, including a 24-month grace period.
  • Equity: You are often required to make a 25% equity contribution to the project cost.

3. RE-MSME PLUS (New for 2026)

Consolidating several older funds, this scheme targets 130,000 disaster-affected entrepreneurs starting in 2026.

  • Disaster Relief Loans: Up to Rs. 250,000 for micro-enterprises and Rs. 1,000,000 for SMEs.
  • Interest Rate: A highly subsidized 3%–5% per annum.
  • Grace Period: Up to 1 year for investments or 6 months for working capital.

4. Required Documentation

To ensure your application is processed despite branch-level resistance, prepare the following:

  • Completed Application: Available for download from the Ministry of Industry or the Industrial Development Board (IDB).
  • Business Registration: Certificate or local authority receipt.
  • Financials: Audited/certified financial statements and bank statements for income verification.
  • Project Proof: Supplier invoices, quotations, or certified BOQs for the project you are funding.
  • Recommendation Form: Crucially, obtain a recommendation from the Ministry of Industries or IDB to bypass branch-level "quota over" claims.
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