Sri Lanka has published its inaugural annual report on the Women Entrepreneurs Finance Code, marking the first year of implementation since becoming South Asia's first adopter of the global initiative in March 2025.

Sri Lanka has released the first annual report documenting progress under the Women Entrepreneurs Finance Code, which the government adopted in March 2025 with technical support from the Asian Development Bank. The milestone represents the country's position as the first nation in South Asia to implement this financial inclusion framework, according to the Ministry of Finance, Planning and Economic Development.

Initial results show measurable progress in broadening access to credit for women-led enterprises. According to the report, thirteen participating financial institutions extended services to over 200,000 women-owned or women-led micro, small and medium-sized enterprises among their broader MSME customer base of approximately 965,000 businesses. During the first year, these institutions approved 36,087 loans to women entrepreneurs totalling around LKR 145.5 billion.

However, data reveals a persistent financing gap. While women-led MSMEs accounted for 30 percent of approved business loans by number, they represented only 20 percent of total approved loan value. This disparity suggests that women entrepreneurs continue to access smaller loans on average, indicating ongoing challenges in scaling financing opportunities. The government attributes financing barriers to factors including limited collateral, low digital adoption, and difficulties accessing formal financial systems.

A cornerstone of the Code is Sri Lanka's first unified national definition for women-owned and women-led businesses, which the Central Bank incorporated into regulatory requirements for financial institutions. Banks must now collect and report gender-disaggregated data on their MSME portfolios, establishing a consistent evidence base for identifying financing gaps and tailoring support. Beyond finance, the framework emphasises business planning, financial literacy, digital adoption and mentorship. The government has introduced a draft National Action Plan spanning May 2026 to May 2030 to further expand financing opportunities and strengthen the support ecosystem for women entrepreneurs.