President Ranil Wickremesinghe has submitted a proposal to the Cabinet to write off all the crop loans taken by farmers for agriculture with immediate effect.
The President presented a proposal to the Cabinet on September 3 to write off the total loans due on September 3 for agricultural loans, revolving loans and farmers pension insurance loans, issued by Farmers’ Banks and Farmers’ Associations under the Department of Agrarian Services with immediate effect.
The President has proposed to release the financial allocations from the Treasury to the Farmers’ Banks and Farmers’ Associations through the Department of Agrarian Services in 2025 to settle the debts and include the necessary provisions in the 2025 Budget proposals.
Treasury sources said that the President’s proposal will be approved at the next Cabinet meeting. At present, 46,933 farmers have outstanding loans of Rs. 1,654,675,093 to the Farmers’ Banks and Farmers’ Associations.
In response to the demands by Farmers’ Associations and farmers, the Government has decided to waive off the loans of farmers to provide financial relief and support the farmers.
The Government will also provide relief to farmers due to the injustice done to them as a result of the decision to stop the import of chemical fertiliser without any valid reason.
