The government has decided to establish a dedicated bank to assist farmers who are compelled to rely on high-interest loans to finance their agricultural activities, according to the Deputy Minister of Housing, Construction and Water Supply, T.B. Sarath.

Speaking to media, Deputy Minister Sarath said the proposed bank will provide farmers with a production allowance of Rs. 100,000 per acre to support cultivation expenses.

The Deputy Minister also revealed that discussions are being held with China to establish an “Agricultural Equipment Hub” in every farming area.

He said the initiative aims to provide farmers with access to modern agricultural machinery, including modern tractors, harvesters, drones and other equipment required for cultivation, at affordable rates.

Deputy Minister Sarath noted that many farmers currently face financial difficulties after obtaining loans from high-interest lenders and struggling to repay them, which often forces them to sell their harvests.

He added that farmer organizations will be established within the next two to three cultivation seasons to ensure farmers receive the financial support needed for their agricultural activities.

“We have been in power for one and a half years and have a five-year mandate to address the challenges faced by farmers,” the Deputy Minister said.