SME & Business Loans Sri Lanka 2026
5 schemes · govt-subsidised · from 6.5% p.a. · agriculture, industry & self-employment
SEPI-II Self Employment Loan
For NVQ-listed occupations. Subsidised effective rate of 6.5% — Sri Lanka’s lowest loan rate. Up to 10-year term. Self-employment projects only.
SMILE III SME Revolving Fund
Eligible industrial enterprises. 10-year term with 2-year grace period. General & technical assistance included. Up to Rs. 30 million.
Kapruka Ayojana — Coconut Loan
Coconut cultivation projects. Up to Rs. 10 million. 12-month grace period. Coconut Cultivation Board of Sri Lanka approved scheme.
BOC SME Business Loan
Working capital & investment loans for SMEs. Flexible repayment matched to business cash flow. Island-wide branch support. All industries.
SDB Micro & SME Loan
AWPLR-linked benchmark 9.44% (April 2026). Ideal for micro & small enterprises nationwide. Community-focused lending with island-wide reach.
SME & Business Loan Comparison — Sri Lanka 2026
| Scheme / Bank | Rate | Max Amount | Max Term | For | Apply |
|---|---|---|---|---|---|
| SEPI-II (Sampath) | 6.5% eff. | Varies | 10 years | NVQ self-employed | Apply → |
| SMILE III (Sampath) | 8% p.a. | Rs. 30M | 10 years | Industrial SMEs | Apply → |
| Kapruka Ayojana (Sampath) | 8% p.a. | Rs. 10M | 10 years | Coconut cultivation | Apply → |
| BOC SME Loan | ~10% p.a. | Rs. 50M | 7 years | All SMEs | Apply → |
| SDB Micro Loan | 9.44% AWPLR | Rs. 5M | 5 years | Micro enterprises | Apply → |
SME & Business Loans in Sri Lanka — 2026 Guide
Sri Lanka has several government-subsidised loan schemes for small businesses, agriculture and self-employment, offering rates as low as 6.5% — far below the commercial lending rate. These schemes are channelled through CBSL-licensed banks like Sampath Bank.
SEPI-II — Sri Lanka’s Lowest Rate Loan at 6.5%
The Self Employment Promotion Initiative (SEPI-II) targets NVQ-qualified self-employed individuals. The effective interest rate is subsidised to 6.5% p.a. — the lowest loan rate available in Sri Lanka. Eligible occupations include electricians, plumbers, carpenters, tailors and other NVQ-listed trades.
SMILE III — For Industrial SMEs
The Small and Medium Industries Leader with Entrepreneur (SMILE III) fund supports industrial enterprises at 8% p.a. with a 2-year grace period and up to Rs. 30 million. Technical assistance is also provided under the scheme.
Who Can Apply for SME Loans?
- Registered sole traders, partnerships or private limited companies
- Annual turnover under Rs. 750 million (SME definition)
- Valid business registration certificate
- At least 1 year of business operation (for most schemes)
- NVQ certificate (for SEPI-II only)