COLOMBO (EconomyNext) – Sri Lanka’s will subsidized credit to tea factories for working capital after global tea prices fell, cabinet spokesman minister Rajitha Senaratne said, with the tax-payer forking out a 2-percent interest subsidy for years.
The two year credit will be available to 714 tea factories owned by private business as well as the state.
The public will pay 461 million rupees through their taxes to finance the subsidy for an estimated 12,911 million in credit in the first year or about 922 million over two years.
Private tea factory owners, regional plantations companies, as well as state-connected Janatha Estate Development Board, Sri Lanka State Plantations Corporation, Elkaduwa Plantations, Tea Research Institute, Kalubowitiyana Tea Factories Ltd and Tea Shakthi Fund will are eligible.
Tea factories can get the 2 percent subsidy for a loan taken from any bank.