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Loan Relief

Aug 30, 2012 (LBO) - Several banks in Sri Lanka will suspend recovering farmer loans in drought stricken areas on an order made by President Mahinda Rajapaksa, information minister Keheliya Rambukwella said.
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The moratorium came after representations made by farmers when President Rajapaksa visited drought stricken areas recently, minister Rambukwelle said.
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The debt moratorium applies to cultivation loans and money borrowed through pawning (loans taken against gold and other items as security), he said.

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The finance ministry has instructed state-run Bank of Ceylon, National Savings Bank, Regional Development Bank and Rural Co-operative Development Bank to stop recoveries, he said.

Farmers in Sri Lanka's north central area in particular had been hit by drought.

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