The Cabinet of Ministers has approved the implementation of a Rs. 5 million concessionary loan scheme for individual agricultural entrepreneurs, with the aim of attracting more young people into the agriculture sector, Cabinet Spokesman and Mass Media Minister Dr. Nalinda Jayatissa announced on Tuesday (19).
The initiative is part of the Government’s plan to create 50,000 agricultural entrepreneurs within the next five years.
Key Features of the Loan Scheme
- Loan amount: Up to Rs. 5 million per individual
- Interest rate: 4% annually on the outstanding balance
- Duration: Five years
- Partner banks: Bank of Ceylon, People’s Bank, and Regional Development Bank
Dr. Jayatissa explained at the weekly Cabinet briefing that limited access to affordable financial facilities has long been a barrier to entrepreneurship in both the agriculture and industry sectors.
“This has discouraged investment, reduced the participation of young entrepreneurs in agriculture, increased the extent of uncultivated land, and ultimately lowered food production,”
he said.
To address these challenges, the Government has allocated Rs. 500 million under the 2025 budget to fund the new scheme, which will support the development of entrepreneurs in agriculture and related industries.
The Cabinet gave approval to the proposal presented by the Minister of Agriculture, Livestock, Land and Irrigation to proceed with the program.
