House Cleaning

The government on Friday said it was setting aside Rs. 500 million to write off mortgages on homes affected by last December’s tsunami as a further relief measure to the victims. The government on Friday said it was setting aside Rs. 500 million to write off mortgages on homes affected by last December’s tsunami as a further relief measure to the victims. Write-offs will be capped at Rs. 250,000 for each affected home or for a household which lost its main income earners.

Cabinet spokesperson and Health minister Nimal Siripala de Silva on Friday said the Cabinet approved the proposal to set aside Rs. 500 million from the treasury to write ff tsunami affected mortgages.

De Silva was however unable to confirm if donor funds would be utilized for the proposal, but added that the allocation could increase if the total; write-offs exceeded Rs. 500 million.

The tsunami destroyed over 70,000 homes across the island’s coastal belt. An official tally of all affected tsunami home loans however has not been complied.

Most banks that offer home loans said the loan losses were not too significant and had already been provided for.

The banks said they have also tri