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Sri Lanka Launches Grants and Low-Interest Loans to Support Cyclone Ditwah-Affected Businesses

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Sri Lanka is providing financial assistance to micro and small enterprises impacted by Cyclone Ditwah. The relief measures include grants ranging from 25,000 to 200,000 rupees for affected businesses, up to 5 million rupees for commercial building repairs, and loans with interest rates between 3-5% and repayment options extending up to 10 years.

The President’s Media Division detailed the relief package as follows:

  • 200,000 rupees for micro, small, and self-employed businesses registered with the Ministry of Industry.
  • 200,000 rupees for businesses registered as entities at Divisional Secretariat offices.
  • 50,000 rupees for unregistered home-based businesses operating from permanent structures.
  • 50,000 rupees allocated for unregistered production industries and greenhouses.
  • 25,000 rupees for temporary pedestrian and mobile business establishments.

A new circular from the Ministry of Finance, Planning and Economic Development supports these businesses, following Cyclone Ditwah’s emergency situation. This initiative aligns with Circular No. 08/2025, aimed at restoring livelihoods disrupted by the disaster.

The government launched this empowerment program through Budget Circular No. 08/2025 on December 5, 2025. Further expansions and improvements were introduced with additional circulars No. 08/2025(i) and No. 08/2025(iii), issued on December 20, 2025, and January 22, 2026, respectively.

The social empowerment program under the new circular offers:

  • A one-time grant to restore disaster-damaged businesses to a condition suitable for reopening.
  • 200,000 rupees for individual, small, and micro-businesses registered with the Ministry of Industry.
  • 200,000 rupees for businesses registered with the Divisional Secretariat.
  • 50,000 rupees for unregistered home-based businesses operating from permanent structures.
  • 50,000 rupees per unit for unregistered production industries, including greenhouses.
  • 25,000 rupees for temporary business setups, such as mobile and street vendors.

Grants are available for commercial building owners affected by the disaster to restore operational conditions:

  • A grant of 500,000 rupees for business building owners opting for assistance without a damage assessment.
  • Up to 5,000,000 rupees for building owners opting for assistance post-damage assessment, based on the assessed value.

The Treasury also introduced a credit scheme for business owners impacted by the disaster:

  • Loans between 250,000 and 25,000,000 rupees at a 3% interest rate, with a 6-month grace period and a 3-year repayment term.
  • Investment loans for business reconstruction up to 25 million rupees at a 5% interest rate, with a 12-month grace period and a 10-year repayment term.

(Colombo/Jan29/2026)


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