The Hon. Namal Karunaratne
The Hon. Namal Karunaratne provided details of Cabinet-approved concessional loan schemes for small and medium-scale rice millers across recent paddy seasons, including objectives to secure fair prices for farmers, provide low-interest financing, and strengthen the rice milling sector. He outlined eligibility criteria such as business registration, a 25 MT maximum daily milling capacity, a Rs. 50 million loan ceiling, a 180-day repayment period, and the requirement to purchase paddy at or above the Government-announced minimum price. He stated that banks would monitor stock-based lending and collateral, the Treasury would pay interest subsidies after certification, and the Department of Agrarian Development would monitor compliance during procurement, while further financial details and lists of mill owners would be provided once received.
Verbatim record (translated)
Machine-translated from Sinhala / Tamil / English¶ 01 Proceeding with the rest:
¶ 02 (a) (i) Cabinet decisions to implement a concessional loan scheme for small and medium-scale rice mill owners were taken on: - 2023 Yala: 2023.08.14 - 2023/2024 Maha: 2024.01.29 - 2024 Yala: 2024.06.19 - From 2024/2025 Maha onwards for forthcoming seasons: 2024.12.30
¶ 03 (ii) Objectives: 1. To enable farmers to sell their paddy harvest at a fair price. 2. To provide required financial facilities at concessional interest to SM-scale rice millers to purchase paddy. 3. To strengthen the SM-scale rice milling industry within the economy.
¶ 04 (iii) Criteria (summarized): 1. Target groups: - 2023 Yala: Small and medium-scale rice mill owners. - 2023/2024 Maha and onward seasons: Small and medium-scale rice mill owners, paddy warehouse owners and bulk collectors; from 2025 Yala, also cooperative societies registered with the Paddy Marketing Board. 2. Valid business registration from a relevant government institution. 3. Maximum daily milling capacity: 25 MT. 4. Maximum loan per borrower: Rs. 50 million. 5. Maximum repayment period: 180 days. 6. Paddy must be purchased at or above the minimum price announced by the Department of Agriculture for each season. 7. From the 2025 Yala season, the scheme will operate only for SM rice mill owners and cooperative societies registered with the Paddy Marketing Board.
¶ 05 (iv) Details are awaited from the finance division and will be provided upon receipt.
¶ 06 (v) Monitoring methodology: Up to 75% of the value of the intended paddy stock will be granted as the maximum loan. After the borrower uses own funds to purchase and store the balance quantity, the bank releases the loan, keeping the paddy stock as collateral. The bank supervises purchase, stock maintenance and release. Treasury pays the interest subsidy upon certification by the bank’s auditor. During procurement, the Department of Agrarian Development monitors whether SM millers and cooperatives buy at the Government’s announced minimum price.
¶ 07 (b) The list of mill owners will be submitted once received.
Provenance
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- Hansard, Saturday, 15 November 2025 ·No. 22870 ·English daily/uncorrected Hansard
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Cite as: The Hon. Namal Karunaratne. 10th Parliament, Parliament of Sri Lanka. Hansard, 15 November 2025. No. 22870. Politick, https://staging.politick.io/lk/speeches/28981