Women entrepreneur loans reached Rs. 145.5 billion in Sri Lanka, but women received only 20% of the total value of MSME lending.
Sri Lanka’s women entrepreneur loans reached approximately Rs. 145.5 billion under the Women Entrepreneurs Finance Code, according to its first annual progress review report for 2025/2026.
The report marks an important step in bringing women-owned and women-led businesses further into the formal financial system as Sri Lanka pursues economic recovery and sustainable development.
The Development Finance Department of the Ministry of Finance, Planning and Economic Development published the report. It provides data on current lending trends and future financial-access targets for women-owned Micro, Small and Medium Enterprises, or MSMEs.
Sri Lanka implemented the global Women Entrepreneurs Finance Code, known as WEFC, at national level in March 2025 with technical assistance from the Asian Development Bank.
Sri Lanka became the first country in South Asia to adopt the Code.
Women Entrepreneur Loans Reach Rs. 145.5 Billion
The report shows that 13 financial institutions participating in the Code served more than 965,000 MSME loan customers.
Of that total, more than 200,000 customers represented businesses with women ownership or leadership.
Financial institutions approved 36,087 business loans for women MSME entrepreneurs during the period reviewed.
Those loans carried a combined value of approximately Rs. 145.5 billion.
However, the figures also reveal a significant difference between the number of loans women received and their total monetary value.
Women-owned and women-led businesses accounted for 30% of all approved MSME business loans when measured by number.
Yet those loans represented only 20% of the total financial value of MSME lending.
The report indicates that further work is needed to expand the volume, accessibility and nature of financing available to women entrepreneurs. It also highlights the need for financial solutions designed around their specific requirements.
National Definition Introduced for Women-Owned Businesses
Another major element of the initiative is a unified national definition for identifying women-owned and women-led enterprises in Sri Lanka.
The Central Bank of Sri Lanka has informed financial institutions about the definition through a circular.
The circular also requires institutions to report gender-disaggregated financial data.
Sahara Kader, Partner, ESG, Government & Public Services at Deloitte Sri Lanka and Maldives, described the publication of the report as an important shift from policy commitments towards measurable action.
“The release of the first annual report of the Women Entrepreneurs Finance Code marks a critical milestone in moving beyond mere policy agreement to measurable practical action,” Kader said.
“This provides stakeholders with a strong data foundation to understand the real needs of women entrepreneurs and to support them more effectively. Deloitte is pleased to contribute to this initiative together with the Ministry of Finance and the Asian Development Bank.”
Women Still Face Structural Barriers
Women account for 34% of Sri Lanka’s economically active population, according to the report.
Women-owned enterprises operate across agriculture, manufacturing, exports, services and retail trade.
However, many small and medium-scale women entrepreneurs continue to face structural barriers.
These include insufficient collateral, difficulties entering the formal financial system, limited adoption of digital technology and weak market linkages.
The report therefore stresses that improving women entrepreneur loans alone will not be enough to unlock their full economic potential.
It also identifies business planning, financial literacy, digitalisation, formalisation and advisory services as important areas requiring attention.
Four-Year Gender Inclusive Finance Plan
The report also presents a draft National Action Plan for Gender Inclusive Financing in Sri Lanka.
Authorities plan to implement the programme from May 2026 to May 2030.
The four-year plan seeks to create a more supportive financial and business environment for women entrepreneurs through cooperation between the public and private sectors.
Its broader objective is to increase women’s participation in economic activity while strengthening access to appropriate financing and business support.
The first WEFC progress report therefore provides both a measure of the gains already made and a clear indication of the financing gap that remains.
Although women received 30% of MSME loans by number, their share fell to just 20% when measured by value. Closing that gap will remain a central challenge as Sri Lanka works to expand women entrepreneur loans and make economic growth more inclusive.
