“Sarusara” rural credit scheme for small-scale farmers

Wednesday, 29 January 2025 00:04 - - {{hitsCtrl.values.hits}}

The Cabinet of Ministers at their meeting on Monday approved implementing the “Sarusara Sapiri” rural credit scheme as an annual program starting this year.

This initiative, previously overseen by the Department of Rural Development under the Central Bank of Sri Lanka (CBSL) since 2020, is designed to provide much-needed working capital for small-scale and minor farmers cultivating short-term crops and engaging in gardening.

The decision to transition the program to the Department of Development Finance under the General Treasury comes in the wake of the new Central Bank Act passed by Parliament.

The legislation limits the Central Bank’s ability to directly implement concessionary loan schemes, necessitating a shift in administration for Sarusara.

“Under the new arrangement, the program aims to continue offering vital financial assistance to rural farmers, ensuring they have access to affordable credit to sustain and expand their agricultural activities,” Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said at the weekly post-Cabinet meeting media briefing yesterday. The proposal to this effect submitted by President Anura Kumara Dissanayake in his capacity as the Finance, Planning, and Economic Development Minister was approved by the Cabinet of Ministers.