CB loans worth Rs 4.1b for North disbursed

Charumini DE SILVA

The Central Bank has disbursed over Rs 4.1 billion to the Northern Province since July 2009 under the Uthuru Wasanthaya program.

Speaking to the Daily News Business Central Bank Assistant Governor W. M. Karunaratne said the bank introduced six different loan schemes soon after the war to uplift the livelihood and businesses in the province.

The recovery of the these loans have been commendable with 100 percent recovery rate. The banks and the financial institutions are keen to set up their branches in the Northen peninsula.

He said under the Awakening North program the Central Bank has disbursed over Rs two billion during the past one and half year.

However, the banks have applied for more than this amount to cater to the increasing demand for credit in the Northern province to set up ventures.

The poverty elevation program Prabodini has also disbursed Rs 130 million. The Sarusara loan scheme specially to assist cultivation in the province has a significant demand.

"For a season loans amounting to over Rs 1.5 billion is applied by residents in the Jaffna peninsula," Karunaratne said.

Majority of Jaffna farmers go for the Sarusara loan scheme to cultivate red onions, while Mannar and Vauniya farmers use the loan for paddy cultivation.

They hope to start cultivation in the coming Yala season in Kilinochchi and Mullaitiuv in addition to the other districts," he said.

The Poonereyn and Paranthan areas are now being fully cultivated by farmers in the area. Most of the lands in these areas are owned by Jaffna people.

Earlier both farmers and land owners had to come through Paranthan, which is a long way. They have easy access to the markets with the recently opening of the Sangupiddi bridge" he said.

The Assistant Governor said over 100 loans were granted under the Saubhagya loan scheme in Mullaitiuv, Kilinochchi and Mannar to set up or to re-start any type of business.

One of the applicants has asked for a loan to set up a cinema hall and currently the Central Bank is working on it.