32 C
Colombo

Cabinet approval to waive off unpaid loans obtained by paddy farmers from state banks

Published:

The Cabinet of Ministers has approved a proposal to forgive unpaid loans from state banks obtained by paddy farmers with less than two hectares.

As Minister of Finance, Prime Minister Ranil Wickremesinghe has submitted the relevant proposal to the Cabinet.

As a result, the cabinet has approved waiving the initial loan amount obtained from state banks for paddy cultivation on lands of two hectares or less, which farmers are having difficulty repaying.

According to the government, the Easter Sunday attacks and the coronavirus pandemic that followed had direct and indirect effects on every field in general.

The Cabinet has been informed that the situation has become intolerable for farmers, who account for approximately 30% of the total population.

Farmers have also faced significant challenges as a result of switching to organic fertilizers rather than chemical fertilizers. As a result, banks have classified the farmers’ unpaid loans as non-performing loans.

As a result, the government made this decision in light of the difficulty farmers will face in obtaining loans for paddy cultivation in the coming season.

Related articles

Recent articles