The Hon. (Dr.) Anil Jayantha - Minister of Labour and Deputy Minister of Finance and Planning

¶ 01 Hon. Speaker, I respond to the question raised under Standing Order 27(2) by the Hon. Leader of the Opposition on 06.02.2026.

¶ 02 1. In estimating GDP for 2024, contributions are categorized as corporate sector, household sector, and state sector: 51 percent corporate, 42.5 percent household, and 6.5 percent state. MSMEs contribute across both household and corporate sectors. As per estimates in the Ministry of Finance Annual Report 2024, MSMEs contribute about 52 percent to GDP. Their export earnings were USD 1,091 million in 2023, USD 1,168 million in 2024, and USD 1,128 million in 2025—under 10 percent as a share.

¶ 03 2. MSME registers are typically compiled every 10 years—last census in 2013. However, based on the Department of Census and Statistics’ 2022 survey “Impact of Economic Crisis on MSMEs,” total establishments are about 1.3 million; of these, 1,037,000 are currently operating; 108,000 closed due to the economic crisis; and 155,000 closed due to other reasons.

¶ 04 3. Multiple programmes support MSME development, including credit schemes via state banks and the Ministry’s Development Finance Division. In 2025, five loan schemes were implemented. Under the MSME Re-energizing Loan Package, Rs. 16,494 million was disbursed to 1,722 beneficiaries. Under ADB-funded SME Development Projects, Rs. 12,830 million to 1,735 beneficiaries. Under the Pledge Loan Scheme, Rs. 13,488 million to 672 beneficiaries. Under the New Consolidated Rural Credit Scheme (NCRCS), Rs. 14,723 million to 39,338 beneficiaries. Under the Expanded Disaster Relief Credit Scheme, Rs. 241 million to 315 beneficiaries.

¶ 05 For 2026, total planned credit packages amount to Rs. 95,686 million: - Refinance loan schemes (Rs. 55,686 million): Rs. 25,000 million for MSME Re-energizing; Rs. 10,000 million for the Expanded Disaster Relief Scheme; Rs. 800 million for the Sustainable Agriculture Programme. - ADB-funded schemes (Rs. 19,886 million): SMELOC 2 revolving facility; SME Sector Development Programme (Rs. 7,750 million); Agriculture Value Chain Financing and Commercialization Sector Development Project (Rs. 6,200 million). - Interest-subsidized loan schemes (Rs. 40,000 million) comprising the Pledge Loan Scheme for SME paddy millers and cooperatives, and the NCRCS.

¶ 06 Additionally, we plan a collateral-free credit guarantee: the Treasury will guarantee two-thirds of the loan amount. In 2026 we target 2,600 guarantees, with total loan value Rs. 16,300 million and guaranteed value Rs. 10,900 million. To date, 374 guarantees have been issued with total loans Rs. 2,976 million and guaranteed value Rs. 1,984 million. Licensed banks’ share of total credit facilities as at 31.12.2025 is 15.3 percent; licensed finance companies 7.1 percent.

¶ 07 Further, the Central Bank has issued two special circulars to facilitate credit to MSMEs affected by recent adverse economic conditions and natural disasters. The first (20.12.2024 media release placed in the Library) allows restructuring and re-documentation of fully impaired Stage 3 loans obtained on or after 01.04.2019, with interest relief: up to 65 percent waiver of accrued unpaid interest for smaller loans (e.g., Rs. 5–10 million), and up to 35 percent for loans above Rs. 100 million, with focus on repayment plans and business revival.

¶ 08 The second circular provides temporary relief for those affected by Cyclone “Micha”: moratorium of 3–6 months on principal and interest with payments at a lower, fixed rate during the period, and access to new working capital after the moratorium to restart businesses.

¶ 09 These circulars, along with the details given in my answer to the fourth question, address the requested timelines and facilities.

¶ 10 Placed in the Library.