The Hon. (Dr.) Harshana Suriyapperuma - Deputy Minister of Finance and Planning

¶ 01 Mr./Madam Presiding Member, in a context where many SMEs have been distressed due to economic difficulties in a bank-stressed country, the Hon. Member has asked about the Bank of Ceylon’s contribution, with the State’s participation, relative to measures implemented across the banking system.

¶ 02 The Bank of Ceylon is listed on the CSE as a debenture-listed institution. Based on available information, the Rs. 30 billion figure cited relates to those disclosures. The Member asks, in that backdrop, about the SME facilities granted and disbursed.

¶ 03 Answers:

¶ 04 - From January to date, loans granted to SMEs total Rs. 37,629 million (Rs. 37.62 billion).

¶ 05 - As at 30 April 2025, active SME loans number 137,975, with an outstanding of Rs. 147,685 million.

¶ 06 - From January 2025 to date, SMEs have repaid close to Rs. 20 billion, demonstrating active business resumption.

¶ 07 - District-wise details for both existing and new customers, including counts and amounts, are provided. Highlights: - Total new SME loans: 2,281 facilities; Rs. 17,256 million. - Total SME loans to existing customers: 17,256 facilities; Rs. 35,348 million. - Overall total: 18,270 facilities; Rs. 37,629 million. - Highest share of new-customer lending by district: Ampara 11%; Kurunegala 10%. This evidences outreach beyond Western Province concentration.

¶ 08 - By loan-size band: - Under Rs. 5 million: 17,452 facilities; Rs. 14,357 million (circa 40% of total amount to the smallest segment). - Rs. 5–10 million: 342 facilities; Rs. 2,764 million. - Rs. 10–25 million: 202 facilities; Rs. 4,675 million. - Rs. 25–50 million: 153 facilities; Rs. 6,333 million. - Over Rs. 50 million (still within SME thresholds): 61 facilities; Rs. 9,500 million.

¶ 09 - Women and youth: - Women entrepreneurs: 4,743 borrowers; Rs. 5,041 million granted (Jan–date). - Youth entrepreneurs: 6,844 borrowers; Rs. 4,886 million. - Rs. 4.886 million is the amount lent to youth entrepreneurs in the SME sector during the period mentioned.

¶ 10 - Non-credit support programmes underway: - District-level SME forums to provide guidance and coordinate with public and private agencies. - Establishment of advisory councils nationwide, with provincial-level programmes to address SME client issues via Bank of Ceylon. - “BoC Gammana”: development of eight selected villages based on criteria such as potential, job creation and enterprise stimulation. - Micro programmes: about 1,500 district-level friendship/awareness programmes initiated.

¶ 11 - Not applicable where queried otherwise.

¶ 12 Supplementary reply on debt restructuring and relief for SMEs (“parate law” relief): The present Government promptly prepared required amendments and implemented a relief process. Based on loan principal thresholds, grace/extension periods were granted: up to 12 months (till 31 Dec 2025) for one group, till end-September 2025 for another, and till end-June 2025 for a third. As of now, total eligible borrowers corresponding to approx. Rs. 160.8 billion have engaged with banks, of which about Rs. 57.365 billion (around 40% of SME principal) worth of borrowers have already approached banks for relief. About Rs. 5.729 billion has been restructured so far, with many more under discussion. We urge remaining borrowers to approach banks to assess restructuring options. The Finance and Industries Ministries have engaged, with necessary guidance communicated to the Central Bank to facilitate extensions and fair access beyond earlier circular cut-offs.