Namal seeks second-chance loan scheme in 2027 Budget

Sri Lanka Podujana Peramuna MP Namal Rajapaksa has asked President and Finance Minister Anura Kumara Dissanayake to include a business lending programme in the 2027 Budget. It would aim to help entrepreneurs who have fully repaid their debts obtain credit again.

In a letter to Dissanayake, Rajapaksa said people who had encountered repayment problems but later cleared their loans could still struggle to secure new borrowing because of information held by the Credit Information Bureau (CRIB). He said records of repaid loans can remain there for up to five years, while stressing that CRIB does not place people on a blacklist.

Rajapaksa outlined five proposed budget measures. They include requiring CRIB to update records within five working days after a loan is fully repaid and to identify settled accounts as closed. He also called for banks to weigh applicants’ present income and capacity to make repayments, not just their earlier credit difficulties, and for Sri Lanka to reconsider how long historical credit data is retained in light of practices elsewhere.

As a comparison, Rajapaksa pointed to Malaysia’s Central Credit Reference Information System, which he said revises loan statuses after repayment and mainly shows repayment patterns over the previous 12 months. His proposed Second-Chance Business Loan Scheme would assist micro, small and medium-sized enterprises that have settled their debts and want to resume operations. He said a borrower who had overcome earlier repayment difficulties should have another opportunity to contribute to the economy, and that the proposals would benefit businesses and the country’s economy.