President Anura Kumara Dissanayake has announced a Rs. 67.7 billion allocation for concessionary loan schemes aimed at strengthening businesses, empowering women-headed households and expanding economic opportunities for entrepreneurs under the 2027 Budget.
Presenting the Budget in Parliament today (12), the President said the Government expects to channel approximately Rs. 174 billion in concessionary loans through State and private banks during 2027.
A major highlight of the proposals is a Rs. 12.5 billion loan programme targeting women-headed households, under which eligible beneficiaries will be able to obtain loans of up to Rs. 1 million through Samurdhi Banks at an annual interest rate of just 3 percent.
The loans will be provided under a group-lending arrangement, with the aim of strengthening the financial stability and livelihoods of women-led families, particularly those in rural areas.
The Budget also proposes a Rs. 7.5 billion concessionary loan programme to develop the home-stay tourism industry. Entrepreneurs will be eligible for loans of up to Rs. 2 million at an annual interest rate of 3 percent to establish new accommodation facilities or upgrade existing ones.
Meanwhile, the Government has allocated Rs. 67,687 million for interest subsidies and refinancing facilities in 2027 to support Micro, Small and Medium Enterprises (MSMEs).
The President said the Government had allocated Rs. 54,136 million for similar programmes in 2026, enabling banks to extend loans amounting to Rs. 97,100 million. The entire allocation had been utilised within the year amid increased demand.
Under the Re-MSME Plus programme, an additional Rs. 20 billion in concessionary loans will be made available, on top of the existing Rs. 30 billion allocation, at an interest rate of 5 percent. A further Rs. 30 billion, with assistance from the Asian Development Bank, will also be channelled towards MSME financing.
In another move to support the rural economy, a Rs. 5 billion loan programme will be introduced for rural entrepreneurs and Aswesuma beneficiaries. Eligible entrepreneurs will be able to obtain loans of up to Rs. 5 million at an annual interest rate of 4 percent, provided they employ at least five Aswesuma beneficiaries.
The fisheries industry will also receive targeted financial assistance through several loan schemes. Large-scale fisheries entrepreneurs, fish exporters, boat manufacturers and producers of fishing equipment will be eligible for loans of up to Rs. 500 million at an annual interest rate of 5 percent.
In addition, an interest-free pledge loan scheme will be introduced for small and medium-scale paddy mill owners to purchase paddy at the Government-guaranteed price. The programme is expected to provide Rs. 20 billion in financial facilities from 2027.
The President said the Government was placing particular emphasis on expanding access to affordable financing as part of its efforts to strengthen entrepreneurship, increase employment and accelerate economic transformation.
