The proposal for the introduction of a concessionary loan scheme to encourage young entrepreneurs in the agriculture and industry sectors has received a Cabinet nod.
An amount of Rs. 500 million has been allocated by the 2025 budget proposal to implement the concessionary loan scheme.
This project will be implemented for five years, and it has been proposed to provide Rs. 05 million for each beneficiary. Under this concessionary loan scheme, the interest charged from the beneficiary has been 4% annual interest on the outstanding loan amount.
According to the government, the lack of concessionary financial facilities has been identified as an obstacle to creating entrepreneurs in the agriculture and industry sectors to encourage investments.
It has been observed that these conditions have been the reasons for reducing the attraction of young entrepreneurs to the agriculture sector, increasing uncultivated lands, and lowering food production.
As such, the Cabinet of Ministers has approved the proposal presented by the Minister of Agriculture, Livestock, Land, and Irrigation to implement the concessionary loan scheme with the Bank of Ceylon, People’s Bank, and Regional Development.
The concessionary loan scheme will enable the achievement of the government’s target of creating 50,000 agricultural entrepreneurs within five years. (Newswire)