The Hon. Namal Karunaratne - Deputy Minister of Agriculture and Livestock

¶ 01 Oral Answers to Questions

¶ 02 Govijana Seva Bank, Mihintale: Loan Granted to Janatha Lanka Chillie Marketing Ltd. [Q. 495/2025]

¶ 03 On behalf of the Minister of Agriculture, Livestock, Land and Irrigation, I answer:

¶ 04 (a) (i) Yes. (ii) Yes. (iii) The Limited Janatha Lanka Chilli Production and Marketing Farmers’ Company (Reg. No. 11/1217/(P)122) was registered by the Registrar of Companies on 21 March 2001. On 19.04.2001, the Chairman of the company, Mr. S. M. Chandrasena (former Minister), requested a loan of Rs. 1,000,000 from the Mihintale Govijana Bank to purchase chillies from 12 Agrarian Service areas in Anuradhapura District. The Mihintale Agrarian Services Committee recommended it on 19.04.2001 and referred it to the Anuradhapura District Operations Committee, which on 23.04.2001 approved issuing the Rs. 1 million in tranches, subject to National Operations Committee conditions applicable to the Govijana Bank (Norms) scheme. The Commissioner General of Agrarian Development and the Secretary of the Ministry of Agriculture, by letters dated 23.04.2001, recommended instead a loan of Rs. 1.2 million as the Rs. 10 million investment was not required. Accordingly, by letter No. A/S/Ag.Bank/… dated 02.05.2001 from the Secretary, Ministry of Agriculture, copied to Director Finance and Senior Assistant Secretary (Institutional Development), the loan was approved; and by letter No. 7/11/8/2/1/12 dated 03.05.2001, the Deputy Commissioner (Productivity and Marketing) conveyed approval to the Assistant Commissioner, Anuradhapura. (iv) Yes. As per the Deputy Commissioner Agrarian Development, Anuradhapura, letter No. 20/05/01/01/02 dated 28.02.2025, the recoverable balances are as follows:

¶ 05 - Disbursed loan: Rs. 1,275,000 - Amount recovered: Rs. 389,500 (07.09.2001) + Rs. 885,500 (06.11.2024) = Rs. 1,275,000 - Interest due: Rs. 1,975,233 (v) Recovery to be in terms of standard loan recovery procedures with 10.5% annual interest as per Commissioner General’s letter No. 7/11/8/2/1/12 dated 17.05.2001. (vi) No. A prior indication to recover only principal was revised. By letter dated 02.01.2025, the Commissioner (Services) indicated principal only (Rs. 885,500) sufficed, not to charge Rs. 1,975,233 interest; but this was amended by letter dated 29.01.2025 requiring recovery of both principal Rs. 885,500 and interest Rs. 1,975,233, and the Regional Agrarian Development Officer on 18.02.2025 notified Mr. S. M. Chandrasena to pay within 14 days. (vii) Not applicable.

¶ 06 (b) Not applicable.

¶ 07 Supplementary

¶ 08 To the question on timeline for collecting Rs. 1,975,233 interest: earlier a decision had been taken not to recover interest, but it has now been reversed; full recovery including interest will be enforced and written notice has been issued to the company Chairman.

¶ 09 On fertilizer subsidy payment anomalies: We have initiated investigations into complaints of unpaid Rs. 25,000 per hectare subsidies showing as paid on the portal but not credited to farmer accounts. A CID complaint has been lodged; the IGP has been engaged; information has been obtained from Bank of Ceylon headquarters. In Anuradhapura alone, funds amounting to Rs. 2,934,310 due to 155 farmers have allegedly been misappropriated; one officer has been arrested. All lawful measures will be taken; no one will be spared.