COLOMBO – Women-owned and women-led micro, small and medium-sized enterprises (MSMEs) received 36,087 business loans worth approximately Rs145.5 billion during the first year of Sri Lanka’s Women Entrepreneurs Finance Code (WE Finance Code), according to the initiative’s inaugural annual report.
The WE Finance Code Annual Report 2025/2026, published by the Department of Development Finance of the Ministry of Finance, Planning and Economic Development, records the first-year progress of the initiative, which Sri Lanka adopted nationally in March 2025 with technical assistance from the Asian Development Bank.
Sri Lanka became the first country in South Asia to adopt the global WE Finance Code, aimed at improving access to finance and broader support for women-owned and women-led businesses.
According to the report, 13 signatory financial institutions serviced more than 965,000 MSME business credit customers during the reporting period, including more than 200,000 women-owned or women-led MSMEs.
Women-owned and women-led enterprises accounted for 30% of approved MSME business loans by number but only 20% of the total value of approved loans, highlighting a continuing gap in the scale and accessibility of financing available to women entrepreneurs.
The report identifies access to credit, lack of collateral, limited digital adoption, weak market linkages and difficulties accessing formal financial systems among the challenges faced by women entrepreneurs.
A key achievement of the initiative has been the introduction of Sri Lanka’s first unified national definition of women-owned and women-led businesses. The Central Bank of Sri Lanka has incorporated the definition and related gender-disaggregated data-reporting requirements into a circular issued to financial institutions.
Under the new requirements, financial institutions must collect and report gender-disaggregated data on their MSME portfolios, providing a common basis for identifying women-owned and women-led enterprises, assessing financing gaps and developing targeted solutions.
The WE Finance Code brings together government institutions, regulators, financial institutions, development partners and other stakeholders to address barriers faced by women entrepreneurs.
Its priorities include increasing financing for women-led MSMEs, improving gender-disaggregated data, expanding non-financial support and strengthening the wider entrepreneurial ecosystem.
Women account for 34% of Sri Lanka’s economically active population and operate businesses across agriculture, manufacturing, exports, services, retail and other sectors.
The report also highlights the importance of support beyond finance, including business planning, financial literacy, digitalisation, formalisation, market access and mentorship.
It introduces a Draft National Action Plan for Gender Inclusive Financing in Sri Lanka for 2026–2030, providing a longer-term framework for expanding financing opportunities and strengthening support for women entrepreneurs.
Deloitte supported the implementation and operationalization of the WE Finance Code in Sri Lanka, including developing the national definition, establishing the framework for gender-disaggregated financial data reporting and bringing together public, private and financial-sector stakeholders.
Zahra Cader, ESG, Government and Public Services Leader at Deloitte Sri Lanka and Maldives, described the publication of the first annual report as an important step in moving from commitment to measurable action.
“The report provides stakeholders with a stronger evidence base to understand women entrepreneurs’ needs and target support more effectively,” Cader said.
The report emphasizes the need for continued collaboration between the public and private sectors to build on the progress made and ensure women-owned and women-led businesses can access appropriate finance and other support to expand and contribute to Sri Lanka’s economic development.
-ENCL
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