Government Approves Sustainable Agriculture Loans Next Year

The Cabinet of Ministers has approved the launch of the “Sustainable Agriculture Program,” a new concessional loan scheme aimed at supporting rural livelihoods and strengthening agriculture’s contribution to economic growth. Scheduled to begin in 2026, the initiative will be funded through a revolving fund established under the Smallholder Agribusiness Partnerships Program, with support from the government and IFAD.

Under the scheme, individual loans of up to Rs. 5 million and bulk loans of Rs. 500,000 per beneficiary will be offered at a highly concessional interest rate of 2% per annum. Repayment periods range from three to five years, with grace periods provided for working capital and joint ventures.

The program covers a wide range of activities, including cultivation, processing, value addition, input supply, and exports. According to Cabinet Spokesman Dr. Nalinda Jayatissa, the scheme is designed to boost productivity, increase incomes, and ensure that recovered loans are reinvested into future agricultural financing.

 

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