Micro, Small and Medium Enterprises (MSMEs) continue to play a pivotal role in driving Sri Lanka’s economy through employment generation, regional development, entrepreneurship, and income distribution. Recognising the importance of this sector, People’s Bank further strengthened its commitment to MSME development in 2025 by expanding its MSME business volume to LKR 20.8 billion, reinforcing its role as a key partner in the country’s economic recovery and long-term growth.
As one of Sri Lanka’s leading state-owned commercial banks, People’s Bank has positioned MSME development as a long-term strategic priority aligned with the Government’s national development agenda. The Bank’s approach goes beyond post-crisis recovery, focusing on supporting the entire MSME lifecycle — from start-ups and micro entrepreneurs to established and growing enterprises — through tailored financial solutions, advisory services, and sector-focused lending facilities.
With its extensive island-wide branch network and deep understanding of local economies, People’s Bank continues to empower entrepreneurs across urban, rural, and underserved communities, contributing significantly towards financial inclusion and regional economic development.
During 2025, the Bank recorded several notable achievements in the MSME sector. The MSME customer base increased by 15.2%, while MSME business volume reached LKR 20.8 billion. ‘Green Power Loan’ granted facilities amounting to LKR 6.9 billion, reflecting the Bank’s growing support for renewable energy and sustainable development initiatives. In addition, the ‘People’s Power Loan’ recorded a significant growth of 74.6% within a year of its commencement, demonstrating strong demand from entrepreneurs and small businesses across the country.
In line with national economic priorities, People’s Bank directed financial support towards several key sectors vital to Sri Lanka’s economic progress. These included agriculture and agribusiness, manufacturing and value-added production, renewable energy projects, trade and services, tourism, and related industries.
A considerable proportion of beneficiaries comprised start-ups, youth entrepreneurs, micro enterprises, and women-led businesses, underscoring the Bank’s commitment to inclusive and equitable economic growth. Women entrepreneurs, in particular, were further supported through dedicated refinance schemes and financial literacy programmes aimed at strengthening business capabilities and long-term sustainability.
People’s Bank offers a comprehensive range of MSME loan products designed to address the diverse financial requirements of businesses at different stages of growth. These include working capital loans to support daily business operations, term loans for machinery, equipment purchases, business expansion and modernization, trade finance facilities for import and export activities, overdrafts and revolving credit facilities for cash flow management, as well as sector-specific financing solutions for agriculture, manufacturing, tourism, construction, logistics, and services.
Among the Bank-funded MSME loan schemes currently offered by People’s Bank are the Small and Medium Enterprises Development (SMED) Scheme, Business Power Loan Scheme, Solar Power Generation Loan Scheme, Green Power Loan, People’s SPARK Loan Scheme, NCGIL Loan Scheme, People’s Power Loan Scheme, Vanitha Saviya Loan Scheme, Aswenna Loan Scheme, and the Pledge Loan Scheme.
Loan amounts, interest rates, and repayment periods are structured according to the nature of the business, purpose of financing, and credit evaluation process, while adhering to MSME classifications introduced by the Ministry of Industries.
Customers seeking MSME financing facilities are encouraged to visit their nearest People’s Bank branch, where Branch Managers and Credit Officers provide personalised assistance in identifying suitable financing options, explaining eligibility requirements, and guiding customers through the application and documentation process.
Through its continued commitment to empowering entrepreneurs and strengthening local industries, People’s Bank remains dedicated to supporting the sustainable growth of Sri Lanka’s MSME sector while contributing meaningfully to the country’s broader economic development objectives.
