The PMD noted that this decision was made to provide financial relief and support to farmers….reports Asian Lite News
The Sri Lankan government has announced an immediate cancellation of all crop loans taken by farmers, following requests from several farmer associations, according to the President’s Media Division (PMD) on Tuesday.
The PMD noted that this decision was made to provide financial relief and support to farmers.
In a separate press statement earlier on Tuesday, the PMD said the country’s gross domestic product (GDP) increased in 2023, reflecting an improvement in the overall economic situation, Xinhua news agency reported.
According to official data, the agriculture sector contributes approximately 7 percent to the national GDP, and over 30 percent of Sri Lankans are employed in the agricultural sector.
Sri Lankan President Ranil Wickremesinghe said on Monday that the government is planning to establish a National Wealth Fund using government assets, similar to investment companies created by countries like Norway, Qatar, and Singapore, where profits from government revenues are used for public welfare.
Noting that he took control of the country during an economic collapse and made “difficult decisions” to rebuild it, Wickremesinghe also emphasised that without the patience shown by the people of Sri Lanka, the island nation could have faced a fate similar to Bangladesh today.
“If people had taken to the streets to govern the country, Sri Lanka could have faced the same fate as Bangladesh today. Rebuilding the economy required making difficult and unpopular decisions, including necessary steps in consultation with the International Monetary Fund (IMF),” the Lankan President said during an event in Colombo on Monday where he launched a new retirement insurance system for the elderly.
“At one point, buying a vehicle, a house, or modern appliances seemed like an unattainable dream for many. However, we have overcome those challenging times, and with the economy now stabilized, the people’s purchasing power has increased, which in turn is expected to fuel the growth of small businesses and attract investors,” he added.
The Lankan President said that his government has also initiated a programme to grant rights to the people, starting with the decision to issue freehold deeds to secure land rights.
As part of this effort, two million freehold deeds are being distributed. Another scheme has also been launched to provide Colombo urban flats to people free of charge, and plans are in place to create estate villages in the upcountry, offering each family a plot of seven perches.
“This process of transferring rights to the people is progressing rapidly,” he said.
Last week, Wickremesinghe held discussions on the ongoing economic collaboration with India during National Security Advisor (NSA) Ajit Doval’s visit to Colombo.
