Seylan Bank PLC has reached a significant milestone with its participation in the Seylan Atha Hitha loan programme, a government-funded initiative aimed at revitalizing Sri Lanka’s micro, small, and medium-scale enterprise (MSME) sector as part of the national economic recovery strategy.
Supported by funding from the Ministry of Finance, the programme is designed to offer accessible and affordable financing to viable MSMEs across key economic sectors. In 2025, Seylan Bank was allocated a total loan fund of LKR 1.2 billion, which was distributed through 90 loans in three phases of LKR 400 million each, contingent on performance-linked disbursement criteria.
Seylan Bank successfully met the full disbursement target for all three phases within the specified timelines. This achievement underscores the Bank’s robust execution capabilities and its ongoing commitment to supporting MSMEs as a vital component of inclusive economic growth. Having surpassed the 2025 targets ahead of schedule, Seylan Bank has been granted an allocation of LKR 1 billion for the first tranche of 2026, further enhancing its ability to provide financial support to entrepreneurs and small businesses nationwide.
Under the Seylan Atha Hitha loan programme, eligible enterprises can access financing up to LKR 25 million at a concessionary interest rate of 5% per annum, reduced from the previous rate of 7%. The facilities are structured to support both working capital and long-term investment needs. Working capital loans are available for a tenure of up to three years, where up to 40% of the total loan amount may be allocated for working capital, with the remainder directed towards investment purposes. Loans for investment and construction-related activities are offered with a tenure of up to 10 years, including an optional one-year grace period.
The programme also emphasizes promoting women-led enterprises through a dedicated credit guarantee mechanism. Eligible women-led businesses can benefit from an 80% credit guarantee cover, along with a reduced risk premium ranging from 0.5% to 1.25%. To qualify, enterprises must meet specific 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 available 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 must 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.
