Sri Lanka's inaugural Women Entrepreneurs Finance Code annual report shows that 13 financial institutions approved over 36,000 business loans worth LKR 145.5 billion to women-owned and women-led enterprises in the first year, though women entrepreneurs continue to face financing gaps.
Sri Lanka has released its first annual report on the Women Entrepreneurs Finance Code, marking a significant milestone since becoming the first South Asian country to adopt the global initiative in March 2025. The Department of Development Finance published the Annual Report 2025/2026 with technical support from the Asian Development Bank, documenting progress in expanding financial access for female entrepreneurs during the code's inaugural year of operation.
According to the report, 13 signatory financial institutions processed more than 965,000 micro, small and medium-sized enterprise (MSME) loans, of which approximately 200,000 were issued to women-owned or women-led businesses. During this period, financial institutions approved 36,087 business loans specifically to women entrepreneurs, representing approximately LKR 145.5 billion in total lending. A key achievement was the establishment of 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 to collect and report gender-disaggregated data.
Despite these advances, significant disparities persist in financing access. While women-owned or women-led MSMEs accounted for 30 percent of approved business loans by number, they represented only 20 percent of total approved loan value. This gap indicates that women entrepreneurs continue to receive smaller loans on average. Women comprise 34 percent of Sri Lanka's economically active population, yet many face persistent barriers including limited collateral, low digital adoption, and difficulties accessing formal financial systems.
The code addresses financing gaps through multiple channels, including increased credit availability, improved data collection for evidence-based policy, expanded non-financial support such as business planning and mentorship, and ecosystem development. The government has introduced a Draft National Action Plan for Gender Inclusive Financing spanning May 2026 to May 2030 to provide a longer-term strategy for strengthening women entrepreneur support systems.
