As Sri Lanka continues its journey toward economic recovery and sustainable development, enhancing financial access for women entrepreneurs is pivotal for fostering an inclusive economy. The release of the inaugural annual report on the Women Entrepreneurs Finance Code represents a significant step forward in improving financial accessibility and support for businesses owned and led by women.
This report, issued by the Department of Development Finance within the Ministry of Finance, Planning, and Economic Development, outlines the progress made during the first year of implementing the Code. Sri Lanka became the first nation in South Asia to officially adopt the WE Finance Code in March 2025, with assistance from the Asian Development Bank.
Central to the Code is Sri Lanka’s first standardized national definition of women-owned and women-led businesses. The Central Bank of Sri Lanka has integrated this definition along with gender-disaggregated data reporting requirements into a circular directed at financial institutions. This mandates that financial entities gather and report gender-specific data regarding their micro, small, and medium-sized enterprise portfolios, thereby establishing a consistent framework for identifying women-led enterprises, evaluating financing gaps, and formulating effective responses to their needs.
The WE Finance Code fosters collaboration among public institutions, regulatory bodies, financial organizations, development partners, and ecosystem stakeholders to tackle the challenges encountered by women entrepreneurs. Key objectives include enhancing financing for women-led micro, small, and medium-sized enterprises, improving the availability of data for informed decision-making, expanding non-financial resources, and nurturing a more supportive entrepreneurial environment.
The necessity of this initiative is highlighted by the fact that women constitute 34% of Sri Lanka’s economically active populace. Women-led businesses span various sectors, including agriculture, manufacturing, exports, services, retail, and small enterprise development. Despite this, they often grapple with obstacles such as limited credit access, inadequate collateral, low levels of digital engagement, insufficient market connections, and challenges in integrating into formal financial systems.
Zahra Cader, ESG, Government & Public Services Leader at Deloitte for Sri Lanka and the Maldives, emphasized the importance of this milestone, stating, “The launch of the first annual report on the Women Entrepreneurs Finance Code is a critical step in transitioning from commitment to measurable action. It equips stakeholders with a robust evidence base to better understand the needs of women entrepreneurs and to target support more effectively. Deloitte is proud to have collaborated on this initiative with the Ministry of Finance, Planning and Economic Development, as well as the Asian Development Bank.”
The initial year’s data reflects promising advancements. The report indicates that 13 financial institutions engaged with over 965,000 MSME credit customers, of which more than 200,000 were women-owned or women-led enterprises. Additionally, it notes the approval of 36,087 loans to women-owned or women-led MSMEs, totaling approximately LKR 145.5 billion.
While women-led MSMEs accounted for 30% of the number of approved business loans, they represented only 20% of the total loan value. This disparity underscores the ongoing need to enhance the scale, accessibility, and suitability of financial resources available to women entrepreneurs.
Besides financial access, the report highlights the significance of business planning, financial literacy, digital adoption, formalization, market access, and mentorship. It also introduces the Draft National Action Plan for Gender Inclusive Financing in Sri Lanka, which aims to span from May 2026 to May 2030, outlining a long-term strategy to broaden financing opportunities and fortify the overall support ecosystem for women entrepreneurs.
This inaugural report encapsulates the collective endeavors of the government, financial institutions, and development partners in operationalizing the WE Finance Code. Deloitte played a key role in this process, aiding in the development of the national definition, creating the framework for gender-disaggregated financial data reporting, and facilitating collaboration among essential public, private, and financial sector stakeholders to improve financial access for women-led MSMEs.
Looking forward, ongoing collaboration between the public and private sectors will be crucial to build on the progress made and to cultivate an environment where women-owned and women-led businesses can secure necessary support, thrive competitively, and make substantial contributions to Sri Lanka’s economic development.
For further details, the full report can be accessed here: Annual Report on the Women Entrepreneurs Finance Code.
