Interest on State Bank loans reduced.27.10.2009-itn news Sri Lanka Video

The interest levied on loans given by State Banks is reduced with effect from midnight today. President Rajapaksa has issued the relevant instructions with the intention of passing on the benefits of the progress achieved in the economy with the end of the war..
The decision was taken today on the instructions of the President during a meeting at Temple Trees this morning. The meeting was held between heads of Banks to secure the contribution of State Banks for the progress of the economic sector. The President said loan recipients should receive the benefits of the interest reduction when releasing credit on instalments by the Bank. Minister Ranjith Siyambalapitiya, Presidents Secretary Lalith Weeratunga and Finance and Treasury Secretary Dr. P.B. Jayasundera attended this meeting.
Dr. P.B. Jayasundera said the war has ended. The global economy is improving. Inflation in the country has decelerated. Infrastructure is in place for economic development. Situation of the small and medium scale industrialists has improved. They also need an opportunity to survive. Dr. Jayasundera said the three State Banks had more than 1500 branches and there is a network to access any village. He noted that only State Banks can usher in awakening.
Chairman of SEMA, Willie Gamage giving his views on the reduction of the interest on loans said loans given for sectors such as agriculture, fisheries and small industries will range from eight percent to 12 percent. It will also apply for the balance that is due to paid for earlier loans. Fines imposed on interests will be suspended. He added that housing loans for the public servants will be released if all requirements are met.