🇱🇰 Sustainable Agriculture Program Launched with Rs. 800 Mn Loan Facility from 2026! 📈

The Cabinet of Ministers has approved a new concessional agricultural loan scheme, the "Sustainable Agriculture Program," to boost rural livelihoods and national economic growth. • Launch: To be rolled out annually starting 2026. • Funding: Financed by a revolving fund under the existing Smallholder Agribusiness Partnerships Program (supported by GoSL and IFAD). Recoveries from current loans will feed into this new "Sustainable Agricultural Fund." • Initial Allocation: Rs. 800 million from the fund for 2026 implementation. • Loan Categories & Terms: • Individual Loans: Up to Rs. 5 million through agricultural and Samurdhi banks. • Interest Rate: 2% per annum. • Repayment: Max 5 years. • Grace Periods: Up to 12 months for applications/joint ventures; 6 months for working capital. • Bulk Loans: Capped at Rs. 500,000 per beneficiary. • Interest Rate: 2% per annum. • Repayment: Max 3 years. • Eligibility: Individuals and institutions involved in a wide range of agricultural and agri-related activities, including cultivation, processing, value addition, input supply, production, and exports. • Objective: To enhance productivity, encourage value addition, and improve incomes across the agricultural value chain, ensuring continuous concessional credit through the revolving fund.