Seylan Bank to support tea smallholders via ADB credit line

6 November, 2022
DGM Ranil Dissanayake

Seylan Bank has become one of the Participating Financial Institutions in a scheme introduced by the Asian Development Bank (ADB) and the Ministry of Finance to develop the island’s tea smallholders.

The ADB, via the Project Management Unit of the Finance Ministry’s Development Finance Department (DFD) has put forward an additional financing credit line to fulfil this purpose.

Deputy General Manager, Branch Credit of Seylan Bank, Ranil Dissanayake said, “Our successful disbursement of the first tranche gave us this invaluable opportunity to receive the second tranche as well. Seylan Bank considers the SME sector as the backbone of the national economy and tea smallholders are a key focus group.

“The tranche is effective for new planting as well as replanting, which extends our reach to many planters who already have their plantations and those who consider commencing tea planting. We take pride in the trust that the ADB has placed on the Bank by allocating the second tranche and enabling us to continue supporting the Tea Smallholders,” he said.

Seylan Bank which successfully disbursed the first tranche of this credit line recently has received approval to disburse the second tranche.

Among the five participating banks, Seylan Bank has been offered the largest quantum to be disbursed to tea smallholders. This positions the financial institution as one of the key transformative agents to act as a catalyst for the growth of tea smallholders across the country.

Smallholders owning less than 50 acres are eligible to borrow under the scheme for replanting, new planting, infilling, irrigation and mechanisation.

Smallholders owning less than 10 acres are eligible to obtain a grant of 10% of the loan value for replanting and new planting only. The applicable interest rate is 7% p.a. and will be subject to a recommendation letter from Tea Small Holdings Development Authority (TSHDA). The maximum loan tenure has been set at 10 years, including a maximum grace period of two years depending on the purpose for which funding is provided.

– Sunday Observer Sri Lanka

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