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A.R.B.J Rajapaksha
A.R.B.J Rajapaksha
Mar 03 2026
31Seylan Bank PLC has achieved a significant milestone under the Seylan Atha Hitha loan programme, a government-funded initiative introduced to re-energise Sri Lanka’s micro, small, and medium-scale enterprise (MSME) sector in line with the national economic recovery strategy.
The programme, implemented with funding support from the Ministry of Finance, is designed to provide accessible and affordable financing to viable MSMEs operating across key sectors of the economy. In 2025, Seylan Bank was allocated a total loan fund of LKR 1.2 billion, comprising 90 loans, released in three phases of LKR 400 million each, based on performance-linked disbursement criteria.
Seylan Bank successfully achieved the full disbursement target across all three phases, within the stipulated timelines. This performance reflects the Bank’s strong execution capabilities and continued focus on supporting MSMEs as a critical driver of inclusive economic growth. As a result of meeting the 2025 targets ahead of expectations, Seylan Bank has already received an allocation of LKR 1 billion for the first tranche of 2026, further strengthening its capacity to extend financial support to entrepreneurs and small businesses across the country.
Under the Seylan Atha Hitha loan programme, eligible enterprises can access financing of up to LKR 25 million at a concessionary interest rate of 5% per annum, reduced from the previous rate of 7%. Facilities are structured to support both working capital and long-term investment requirements, with working capital loans available for a tenure of up to three years, where up to 40% of the total loan amount may be allocated for working capital needs and the balance directed towards investment purposes. Loans for investment and construction-related activities are offered with a tenure of up to 10 years, inclusive of an optional one-year grace period.
The programme also places a strong emphasis on promoting women-led enterprises through a dedicated credit guarantee mechanism. Eligible women-led businesses can benefit from an 80% credit guarantee cover, together with a reduced risk premium ranging from 0.5% to 1.25%. To qualify, enterprises must meet defined ownership and governance criteria, including majority female ownership or significant female participation in ownership, management, and board-level representation, where applicable. Businesses engaged in trading, leasing, and renting activities are not eligible under this scheme.
The Seylan Atha Hitha loan programme is open to economically and financially viable MSMEs operating in sectors such as manufacturing, construction, export-oriented industries, tourism, apparel, fisheries, animal husbandry, agriculture, agro-based industries, and women-led enterprises. Eligible businesses are required to maintain an annual turnover below LKR 1,000 million, employ fewer than 200 persons, and hold valid business registration.
Through the Seylan Atha Hitha loan programme, Seylan Bank continues to demonstrate its commitment to empowering MSMEs with affordable access to finance, supporting women-led entrepreneurship, and contributing to sustainable and inclusive economic growth in Sri Lanka.
