Sri Lanka has published its first annual report on the Women Entrepreneurs Finance Code, becoming the first South Asian nation to adopt the initiative. The report shows that 13 signatory financial institutions approved over 36,000 business loans worth approximately LKR 145.5 billion to women-owned or women-led micro,…
Sri Lanka has released the inaugural annual report on its Women Entrepreneurs Finance Code, a significant milestone in the country's efforts to strengthen financial access for women business owners. Adopted nationally in March 2025 with technical support from the Asian Development Bank, Sri Lanka became the first country in South Asia to implement the globally recognised initiative, which aims to address systemic barriers women entrepreneurs face when accessing credit and support services.
First-year results from the scheme demonstrate considerable progress. According to the report published by the Department of Development Finance, thirteen participating financial institutions served more than 965,000 micro, small and medium-sized enterprise customers, of which over 200,000 were women-owned or women-led businesses. During this period, financial institutions approved 36,087 business loans to women entrepreneurs, representing approximately LKR 145.5 billion in lending. However, the data also reveals ongoing disparities: while women-led businesses accounted for 30 percent of approved loans by number, they represented only 20 percent of total loan value, suggesting that women entrepreneurs continue to receive smaller loan amounts on average.
A cornerstone of the initiative is Sri Lanka's first unified national definition for women-owned and women-led enterprises. The Central Bank of Sri Lanka has mandated that all financial institutions collect and report gender-disaggregated data on their MSME portfolios using this standardised definition, creating a consistent framework for identifying financing gaps and developing targeted solutions. The code addresses multiple challenges affecting women entrepreneurs, including limited credit access, lack of collateral, low digital adoption, weak market connections and difficulties navigating formal financial systems.
The report recognises that women comprise 34 percent of Sri Lanka's economically active population and operate across diverse sectors including agriculture, manufacturing, exports and services. Beyond financing, the initiative emphasises business planning support, financial literacy programmes, digital adoption, formalisation assistance and mentorship. A National Action Plan for Gender Inclusive Financing has been introduced to guide efforts from May 2026 to May 2030, with sustained public and private sector collaboration identified as essential to expanding opportunities and support for women-led businesses.
