Sri Lanka approves Rs50bn in subsidized credit

ECONOMYNEXT – Sri Lanka’s state and private banks have approved 49.17 billion rupees of subsidieze credit to 22,957 persons under an Enterprise Sri Lanka branded program where tax payers pay part of the interest, the finance ministry said.

There were 16 programs including three financed from foreign lenders. The Asian Development Bank is financing an 8 billion rupee program for rooftop solar.

There have been 6,022 loans under ‘Ran Aswenna’ scheme for farming where 5 to 750 million rupees of credit is given. Tax payers bears 6.75 percent of the 13.5 percent interest of the loan.

Under ‘Govi Navoda’ another farming credit scheme, 1,749 small farmers have received loans. For a 0.5 million loan taxpayers will bear 75 percent and the farmer will pay 3.38 percent.

Under ‘Sonduru Piyasa’ scheme by Bank of Ceylon, 11,807 persons and from Regional Rural Development Bank 5,612
persons and National Savings Bank 2,983 persons and from People’s Bank 1,402 persons have received credit.

In the 2018 budget 5,300 billion rupees have been allocated for interest subsidies under the Enterprise Sri Lanka program.

The program was officially launched by President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe on June 22. (Colombo/Sept24/2018)
 

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