More than 29,600 businesses classified as Micro, Small, and Medium Enterprises (MSMEs) have registered as disaster-affected following recent devastation in Sri Lanka, Industries Minister Sunil Handunnetti informed Parliament.
The Minister stated that, as of Wednesday (17), the government had received reports from a total of 29,649 industries impacted by the disaster. “I think there are more than 29,000 businesses. They have to fill a small form to get registered,” Minister Handunnetti said, summarising the current status of affected industries and businesses.
Of the registered businesses, damages have already been assessed for more than 10,000. Breaking down the registrations, 12,300 are micro enterprises, 9,844 are small enterprises, 6,644 are medium enterprises, and 861 fall under the large enterprise category. Additionally, 685 of the affected businesses are involved in exports.
Small and medium-sized enterprises, which are a cornerstone of Sri Lanka’s economy and contribute significantly to employment and local supply chains, were among the worst affected by the destruction caused by Cyclone Ditwah. Flooding and landslides devastated workshops, retail outlets, warehouses, and small factories across multiple districts, resulting in the loss of inventories, machinery, and raw materials overnight.
Many SME operators, particularly those in agriculture-linked processing, textiles, tourism services, and informal trade, lacked insurance coverage or sufficient savings, leaving them unable to quickly resume operations. Disrupted transportation networks, extended power outages, and delays in accessing credit have further compounded losses, raising concerns about the possibility of permanent closures and increased job losses.
The ongoing challenges facing SMEs have intensified worries about a slow and uneven economic recovery, especially in rural and semi-urban areas that rely heavily on small businesses for livelihoods.
To support the recovery, the government has already released 1 billion rupees for disbursement among affected industries to help them resume operations, the Minister said. “Each industry, whether they are registered in the past or not, will receive 200,000 rupees soon after they report their damages,” Handunnetti added.
Of the total number of affected businesses, 2,498 are engaged in agriculture-related industries and 634 are in the tourism sector.
The Ministry of Industries has also approved a 3 percent interest rate loan for registered SMEs under the government’s 2026 budget allocation of 80 billion rupees, according to the Minister.
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