The Government plans to establish a dedicated bank for farmers to provide easier access to financing and reduce dependence on high-interest loans used to fund agricultural activities.
The proposal also includes a production allowance of Rs. 100,000 per acre to help farmers meet cultivation costs, Deputy Minister of Housing, Construction and Water Supply T.B. Sarath said while addressing the media.
Support for Farmers
The Deputy Minister said many farmers currently rely on high-interest lenders to finance cultivation, making it difficult to repay loans and forcing some to sell their harvests to settle debts.
The proposed bank aims to provide a more affordable financing option while improving farmers’ financial stability.
Modern Equipment Planned
The Government is also discussing plans with China to establish an Agricultural Equipment Hub in farming areas across the country.
The centres are expected to provide farmers with access to modern machinery, including tractors, harvesters, drones and other cultivation equipment, at affordable rates.
Banking & Finance Government Decisions
Last modified: July 13, 2026
