HSBC opens Jaffna branch:

Approval for more than 90 banks in North

Harshini PERERA

The Central Bank has granted approval for the establishment of more than 90 banking outlets in the Northern Province. "With the dawn of peace in May, the Government and the Central Bank has taken efforts to expand financial services, facilitate and stimulate economic activities and the development infrastructure in the North and the East," Central Bank Governor Ajith Nivard Cabraal said at the opening of the Hongkong and Shanghai Banking Corporation Ltd., new branch at Jaffna yesterday.

The development and maintenance of essential public infrastructure is an important ingredient of sustained economic growth and poverty reduction. Vadakkin Vasantham is one among the well-planned, integrated, accelerated development programs that will carry Rs 295 billion worth of aid for the next three years, he said.

Along with that the Government also intends to implement a special poverty reduction program and establish the required social net quickly.

A proper structure is in place to commence a new Poverty Alleviation Micro Finance Project to cover conflict-affected districts. Three thousand beneficiary groups with more than 12,000 low-income families have already been organized within the Jaffna peninsula under this project, he said.

"We have also fast-tracked the Agro-Livestock Development Loan scheme, which is another scheme that could provide increased benefits to this province. The Agro-Livestock Development Loan Scheme called Vadakkin Vasantham is expected to boost the livestock development and an initial sum of Rs 3,000 million has been appropriated to be disbursed at a concessionary interest rate of nine percent per annum to the eligible micro, small and medium scale enterprises through several participating financial institutions. There will be a new Central Bank's Provincial Office and the arrangement of a Special Northern Regional Development Fund for the Northern Province," he said.