July 25, Colombo (LNW): The Agriculture Modernization Project (ASMP) implenets with the goal of enhancing agricultural productivity, market access, and value addition for smallholder farmers and agribusinesses across five provinces: Northern, Eastern, Central, North-Central, and Uva.
The Ministry of Agriculture’s Project Management Unit will oversee the initiative in seven districts: Jaffna, Mullaitivu, Anuradhapura, Polonnaruwa, Batticaloa, Matale, and Monaragala providing interest free loans for farmers in collaboration with Bank of Ceylon (BOC) and Regional Development Bank (RDB).
ASMP aims to directly benefit 14,000 farm households through improved production capacity, better input supply and management, efficient technology, and strengthened market linkages.
Additionally, 20,000 farm households will benefit from the establishment of professional farmer organizations and capacity building through business and marketing training activities.
The project’s Agricultural Technology Demonstration Plots (ATDPs) and complementary production infrastructure investments target these seven priority districts.
A significant milestone was achieved with the signing of a Memorandum of Understanding (MoU) at the Presidential Secretariat.
This MoU facilitates interest-free loans to agribusiness entrepreneurs and farmers, marking the first phase of the Agriculture Modernisation Program.
The MoUs were signed between the Bank of Ceylon, Regional Development Bank, and Agriculture and Plantation Industry Ministry Secretary Janaka Dharmakeerthi. Another MoU with the People’s Bank is anticipated shortly.
Under this phase, Rs. 650 million has been allocated to fund projects through agricultural modernization centers in 26 selected Divisional Secretariat (DS) divisions.
The scheme involves a revolving credit mechanism, with the government covering 70% of the costs and agribusiness entrepreneurs and farmers contributing the remaining 30%.
The Agricultural Modernisation Credit Scheme provides interest-free loans recoverable by a bank chosen by the beneficiary from the participating banks.
This scheme was established through a Cabinet memorandum presented by President Ranil Wickremesinghe.
Approved projects will receive funds from an account held by the Agriculture and Plantation Industry Ministry Secretary at the Bank of Ceylon’s Head Office. Beneficiaries can process their loans through any of the three participating banks, with a concession period of up to six months and a maximum repayment period of five years.
Ministry Secretary Janaka Dharmakeerthi emphasized the need for production-oriented programs, aiming to support categories with production potential and provide necessary facilities to boost future production.
Dharmakeerthi expressed confidence that the agricultural modernization program will achieve significant milestones and is crucial for the country’s long-term agricultural goals.
Dr. R.H.S. Samaratunga, Presidential Senior Advisor on Economic Affairs, highlighted that the Agricultural Modernisation Program was featured in two budgets presented by President Ranil Wickremesinghe.
The agreement aims to allocate unused land to local entrepreneurs, fostering the development of export-oriented agriculture and establishing a commercial agriculture sector driven by local entrepreneurs.
