The government has decided to cut off the basic loans taken by the government banks for paddy cultivation on two hectares or less land, which are already difficult to pay.
In this regard, the announcement issued by the Cabinet Office is as follows.
The economic crisis created in the country based on the Easter attack and the subsequent Covid-19 epidemic situation is intensifying and is having a direct and indirect impact on all sectors in general.
This situation has made it difficult for the farmers, who are about 30% of the total population, to bear and the decision to resort to organic fertilizers instead of using chemical fertilizers has led to further difficulties for the farmers.
Under that situation, the loans taken by the farmers for paddy cultivation have failed to be repaid and the said loans have been classified as non-performing loans by the banks.
As a result, many farmers are likely to be ineligible to get loans for paddy cultivation in the coming Maha season, so it has become essential to provide relief to them through the intervention of the government.
Accordingly, the Council of Ministers approved the proposal presented by the Honorable Prime Minister as the Minister of Finance, Economic Stabilization and National Policy in order to cut off the initial loan amount obtained by the government banks for the cultivation of paddy on two hectares or less land which has already become difficult to pay.
