Govt will not curtail public servants’ loans
KOTTE: Enterprise Development and Investment Promotion Minister Dr.
Sarath Amunugama yesterday told Parliament that the Government with
effect from year 2005 to 2007 has granted Rs. 15.6 billion worth
property loans to 17,000 Government employees.
According to the Minister when the Government introduced this special
scheme in 2005, only Rs. 500 million had been allocated per year to
grant loans to public servants.
However, the steps taken by the Government in 2005 have been able to
provide Rs. 15.6 billion worth loans to 17,000 public servants up to
“This clearly indicates the increase of the percentage and the amount
of loans granted to public servants”.
During the period from 2005 to 2007 the People’s Bank has granted Rs.
8,679 million loans to 8,933 public servants while the Bank of Ceylon
has released Rs. 3545 million to 3,926 public servants. In addition, the
National Savings Bank has given Rs. 4,443 million credit facilities to
476 public servants and
the State Mortgage and Investment Bank has granted Rs. 367 million
loans to 577 public servants.
The Housing Development and Finance Bank has also given Rs. 800
million worth loans to 1,230 public servants, the Minister said.
The Government has taken action to increase Rs. 1 million loan
granted to a public servants up to Rs. 3 million.
“Therefore, the Government has no intention to restrict the loans
granted to public servants”, he said. The Minister said at present the
Government has also taken steps to remove certain rules and regulations
imposed on loans granted to public servants.
The Government for the first time has appointed a special board to
overcome salary anomalies of public servants.
The Government has also taken measures to increase the pension
benefits by bringing the minimum pension salary scale to Rs. 12,480.