Sri Lanka's newly adopted Women Entrepreneurs Finance Code has facilitated over 36,000 business loans worth approximately LKR 145.5 billion to women-owned and women-led enterprises in its first year of operation, according to an annual report published by the Ministry of Finance.
Sri Lanka's Women Entrepreneurs Finance Code, adopted in March 2025 with support from the Asian Development Bank, has achieved significant milestones in its inaugural year. The country became the first in South Asia to implement the global initiative, establishing a comprehensive framework designed to expand financial access for women business owners and leaders.
According to the first annual report released by the Department of Development Finance, thirteen signatory financial institutions have made measurable progress in supporting women-led enterprises. The report documents the approval of 36,087 business loans totalling approximately LKR 145.5 billion to women-owned or women-led micro, small and medium-sized enterprises (MSMEs). These same institutions currently service more than 965,000 MSME business credit customers overall, of whom over 200,000 are women-owned or women-led operations.
A cornerstone of the initiative is Sri Lanka's first unified national definition for women-owned and women-led businesses. The Central Bank of Sri Lanka has required all financial institutions to collect and report gender-disaggregated data using this standardised definition, creating a consistent framework for identifying financing gaps and developing targeted solutions.
However, data indicates significant work remains ahead. While women-owned or women-led MSMEs account for 30 percent of approved loans by number, they represent only 20 percent of total approved loan value, suggesting the need for larger-scale financing. Women entrepreneurs continue to face barriers including limited collateral access, low digital adoption and difficulties entering formal financial systems. The government has introduced a Draft National Action Plan for Gender Inclusive Financing covering May 2026 to May 2030 to address these ongoing challenges.
