A special discussion on the challenges faced by small and medium-scale entrepreneurs and new entrepreneurs in the Northern Province in obtaining bank loans, and the solutions thereto, was held this evening – on Friday 06 February 2026, at the Governor’s Secretariat under the chairmanship of the Hon. Governor of the Northern Province, N. Vethanayahan.
Although the government has introduced various loan schemes with the objective of promoting a production-oriented economy, it was pointed out during the discussion that information about these schemes does not reach entrepreneurs in a timely manner. It was also extensively examined why, despite the high demand in the Northern Province compared to other provinces, the number of beneficiaries of such loans remains low, along with the underlying reasons for this situation.
Allegations were raised that branch managers of banks impose additional conditions for certain loan schemes. On the other hand, bank managers pointed out that many entrepreneurs in the North lose the opportunity to obtain loans due to their failure to carry out proper “business name registration” and to meet the basic requirements of banks.
In order to overcome these challenges, it was decided to establish a new mechanism to provide guidance to entrepreneurs on obtaining loans and to clearly explain bank requirements.
Accordingly, agreement was reached to conduct continuous awareness and guidance seminars for entrepreneurs at the Northern Regional Office of the Central Bank of Sri Lanka, with the participation of one bank each month.
The discussion was attended by the Northern Regional Manager of the Central Bank of Sri Lanka, regional managers of state and private banks, heads of government departments related to small and medium enterprises and a group led by Dr. Akilan Kathirkamar, a member of the Governor’s Advisory Committee.
