News

Samurdhi banks: Low interest loans for vulnerable groups

By Skandha Gunasekara

Samurdhi banks would be used to give low interest loans to vulnerable groups to counter high interest rates of private finance companies. 

State Minister of Samurdhi, Household Economy, Microfinance, Self-Employment and Business Development Shehan Semasinghe told The Morning that this was one of the measures to be taken to provide relief to those trapped by high interest microfinance loan schemes. 

“Samurdhi banks will give loans at low interest. This will help the people to have an option of low interest rates and will cause competition in the market.”
He said that in addition, Act No. 8 of 2016 would be amended, in accordance with government policies. 

“This Act is a very inactive Act and cannot regulate anything. So we will look into amending this Act with regard to protecting both parties; the borrower as well as the lender.”