Sri Lanka Ministry of Finance announces relief for businesses affected by Cyclone Ditwah

2026-01-28 - 06:03

The Ministry of Finance, Planning and Economic Development of Sri Lanka has issued a new circular to provide relief to micro, small, and self-employed businesses affected by the emergency situation caused by Cyclone Ditwah. This initiative builds on Circular No. 08/2025, introduced to restore livelihoods disrupted by the disaster. The government programme to support communities impacted by the cyclone was initially launched through Budget Circular No. 08/2025 dated December 5, 2025. To expand and improve the delivery of assistance, additional circulars, No. 08/2025(i) dated December 20, 2025, and No. 08/2025(iii) dated January 22, 2026 have been issued. Relief under the new circular includes: 1. Assistance for Individual, Small, and Micro Businesses A one-time grant to restore businesses damaged by the disaster. LKR 200,000 for businesses registered with the Ministry of Industry. LKR 200,000 for businesses registered with the Divisional Secretariat. LKR 50,000 for unregistered home-based businesses operating from a permanent structure. LKR 50,000 per unit for unregistered production industries, including greenhouses. LKR 25,000 for temporary business setups, such as mobile and street vendors. 2. Assistance for Business Premises Owners A grant of LKR 500,000 for business building owners who opt for assistance without a damage assessment. A grant of up to LKR 5,000,000 for owners who choose assistance after a damage assessment, based on the assessed value of the building. 3. Loan Facilities for Business Recovery Loans ranging from LKR 250,000 to LKR 25,000,000 at 3% interest, with a six-month grace period and a repayment period of three years, to help affected businesses restart operations. Investment loans of up to LKR 25,000,000 at 5% interest, with a 12-month grace period and repayment over ten years, for reconstruction and long-term business recovery. The Ministry emphasizes that these measures aim to restore business operations quickly and support the economic recovery of communities affected by Cyclone Ditwah.