President Anura Dissanayake has announced a proposal to provide collateral-free loans to young entrepreneurs. To qualify, entrepreneurs would need to submit a business plan and obtain a certificate from the Ministry of Industry.
Central Bank Governor Nandalal Weerasinghe has cautioned that collateral-free loans effectively make the government a guarantor. This means that if borrowers default, taxpayers would be responsible for covering the debt.
Financial and economic experts have expressed concerns about the risks associated with collateral-free loans. While acknowledging the popularity of such a policy, they emphasize the need to carefully consider its practicality.
Meanwhile, the National Livestock Development Board has launched an initiative to sell grass at subsidized rates to cattle farmers.
Farmers can purchase one kilogram of sorghum grass for 15 rupees. This type of grass is in high demand among cattle farmers.
The board stated that the production cost for sorghum grass is 11 rupees per kilogram and that it is currently being cultivated on several of the board’s farms.
In addition to sorghum, the board is also selling another type of grass called Brachiaria ruziziensis for 13 rupees per kilogram.
