People’s Bank commits to rebuild MSMEs through govt.-backed financing

Following are the excerpts from an interview with People’s Bank Deputy General Manager SME, Development and Microfinance Wickrama Narayana.

QHow is People’s Bank ready to support the rebuilding of the micro, small and medium enterprise (MSME) sector in Sri Lanka, not only in the post-crisis context but in general?

The MSMEs are the backbone of the Sri Lankan economy, playing a vital role in employment generation, regional development and income distribution. At People’s Bank, supporting MSMEs is a long-term strategic priority aligned with our mandate as the country’s premier state-owned commercial bank.

Our approach extends beyond post-crisis recovery to support the full MSME life cycle, from start-ups and micro entrepreneurs to growing and established businesses, through tailored financing, advisory support and sector-specific solutions. With our islandwide branch network and strong understanding of local economies, People’s Bank is well positioned to serve entrepreneurs across urban, rural and underserved communities.

QWhat government-funded facilities are currently available through People’s Bank?

People’s Bank actively participates in several government-funded and concessionary loan schemes, offering lower interest rates compared to market rates, medium to long-term tenures, loan amounts based on project viability and eligibility criteria defined by sector, purpose and enterprise size. 

The government-funded loan products are made available at People’s Bank branches, in line with the government policy directives in the MSME sector. (See table)

QCan you briefly summarise the MSME loan products offered by People’s Bank?

People’s Bank offers a wide range of bank-funded MSME loan products, including working capital loans to support day-to-day business operations, term loans for machinery, equipment, expansion and modernisation, trade finance facilities including import, export and local trade support, overdrafts and revolving credit to manage cash flow fluctuations and sector-specific loans tailored for agriculture, manufacturing, tourism, construction, logistics and services.

Loan amounts, interest rates and tenures vary depending on the business profile, purpose of the loan and credit evaluation, with repayment periods extending up to several years for long-term investments whereas the MSME definition introduced by Industries Ministry for categorisation of concerned businesses. 

People’s Bank offers a range of bank-funded loan schemes in the MSME sector as follows and the interest rates vary from 7.0 percent p.a. to 12.0 percent p.a.

 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 

 Pledge Loan Scheme (Bank-Funded Variant) 

QHow should the customers approach People’s Bank to access these facilities?

The customers are encouraged to visit their nearest People’s Bank branch, which serves as the primary access point for MSME financing. Branch managers and credit officers will assess the customer needs, recommend suitable bank-funded or government-funded facilities and provide guidance on eligibility and documentation, ensuring personalised support throughout the process.

This branch-based approach ensures transparency, sound advisory support and efficient decision-making. People’s Bank remains committed to empowering Sri Lanka’s MSME sector as a long-term national responsibility, delivering inclusive and sustainable financial solutions through both its own resources and government-backed initiatives.