Cabinet approves write-off of unpaid loans taken by paddy farmers

Wednesday, 6 July 2022 00:28 - - {{hitsCtrl.values.hits}}

Agriculture Minister Mahinda Amaraweera

Cabinet of Ministers at its meeting on Monday decided to write off loans taken by farmers as of end-

May in consideration of multiple crises starting from 2019 Easter Sunday bombings, COVID-19 and the current crisis.

Cabinet Co-Spokesman and Minister Bandula Gunawardena said the write-off is a big boost for impacted paddy farmers.

He said apart from multiple external crises, farmers also had to contend with sudden change in fertiliser policy and rise in cost of inputs.

He said due to these factors, farmers have defaulted in repayment of loans taken for paddy cultivation.

It was revealed that State banks have classified these farmer loans as non-performing. Due to this reason, many farmers may be ineligible for the loans required for paddy cultivation in the upcoming season. Therefore, it was essential to provide relief to them through the intervention of the Government.

Accordingly, the Cabinet of Ministers approved the proposal presented by Prime Minister in his capacity as the Minister of Finance, Economic Stability and National policies to waive off the principal loans taken from the Government banks for the cultivation of paddy on land of two hectares (5 acres) or less.