FINANCIAL CHRONICLE – As Sri Lanka continues to pursue its economic recovery and long-term growth strategy, enhancing financial access for women entrepreneurs is vital for fostering a more inclusive economy. The release of the inaugural annual report on the Women Entrepreneurs Finance Code signifies a pivotal advancement in bolstering financial opportunities and support for businesses owned or led by women.
Published by the Department of Development Finance under the Ministry of Finance, Planning, and Economic Development, the Annual Report for 2025/2026 outlines the initial progress made in the first year following the national adoption of the WE Finance Code in March 2025, with guidance from the Asian Development Bank. This initiative marks Sri Lanka as the first country in South Asia to embrace this global framework.
Zahra Cader, ESG, Government & Public Services Leader at Deloitte Sri Lanka and Maldives, commented on the importance of this development, stating: “The release of the first annual report for the Women Entrepreneurs Finance Code represents a significant leap from promise to actionable results. It equips stakeholders with a robust evidence base to better understand the needs of women entrepreneurs and tailor their support accordingly. Deloitte is proud to have collaborated with the Ministry of Finance, Planning and Economic Development, as well as the Asian Development Bank, to support this initiative.”
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The data from the first year reveal promising trends. The report indicates that 13 financial institutions that signed onto the Code served over 965,000 MSME business credit clients, with more than 200,000 being women-led or women-owned businesses. Additionally, 36,087 business loans totaling around LKR 145.5 billion were approved for these enterprises.
A cornerstone of the Code is the establishment of Sri Lanka’s first standardized national definition of women-owned and women-led businesses. The Central Bank of Sri Lanka has integrated this definition and the requirement for gender-disaggregated data reporting into a directive sent to financial institutions.
This directive mandates that financial institutions gather and submit gender-disaggregated data regarding their micro, small, and medium-sized enterprise portfolios in accordance with the national definition. This creates a uniform approach to identifying women-owned and women-led businesses, evaluating financing gaps, and devising more effective solutions to meet their needs.
The WE Finance Code aims to unite public entities, regulators, financial institutions, development partners, and ecosystem actors to tackle the challenges encountered by women entrepreneurs. Its key objectives involve increasing funding for women-led MSMEs, enhancing data for sound decision-making, broadening non-financial support, and fostering a more favorable entrepreneurial environment.
The necessity for this initiative is highlighted by the fact that women comprise 34% of Sri Lanka’s active workforce. Women-led businesses span various sectors, including agriculture, manufacturing, exports, services, retail, and small enterprise development. Nonetheless, many still confront obstacles such as restricted access to credit, inadequate collateral, limited digital engagement, weak market connections, and hurdles in integrating into formal financial systems.
Despite women-owned or women-led MSMEs accounting for 30% of the approved number of MSME business loans, they represented merely 20% of the total loan value approved. This underscores the ongoing requirement to enhance the scale, accessibility, and appropriateness of financial resources available to women entrepreneurs.
Beyond financial access, the report emphasizes the significance of business planning, financial literacy, digital integration, formalization, market access, and mentorship. It also presents a Draft National Action Plan for Gender Inclusive Financing in Sri Lanka, covering the period from May 2026 to May 2030, which aims to provide a long-term strategy for expanding financing options and reinforcing the broader support network for women entrepreneurs.
The inaugural report showcases the collaborative efforts of government bodies, financial institutions, and development partners in translating the WE Finance Code into actionable measures. Deloitte has played a role in the implementation and operationalization of the Code in Sri Lanka, including the establishment of the national definition, the creation of the framework for gender-disaggregated financial data reporting, and facilitating the engagement of key stakeholders across public, private, and financial sectors to improve access to finance for women 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 access necessary support, enhance their competitiveness, and contribute more significantly to Sri Lanka’s economic growth.
For further details, the full report can be accessed here: Annual Report 2025/2026.
(Colombo/Aug12/2026)
