BOC set to disburse Rs.42.8bn in loans under Saubagya COVID-19 scheme

• Says already Rs.34.6bn been disbursed
• 58% loans to SMEs; 33% to agricultural sector 

State banking giant, Bank of Ceylon (BOC) said it has approved Rs.43.8 billion loans under Central Bank’s Rs.150 billion Saubagya COVID-19 loan scheme and has already disbursed Rs.34.6 billion, which is almost 83 percent of the total number of loans BOC has registered with the Central Bank.

The programme officially termed the ‘Saubagya COVID-19 Renaissance Facility’,  was launched by the Central Bank to revive businesses adversely impacted by the pandemic, so as to mitigate the negative effects on living conditions countrywide and the national economy. 

Introduced in three phases, the four percent interest working capital loans offered through the programme have helped businesses continue operations and support their employees, while contributing to the country’s economic revival. Participating financial institutions such as BOC were asked to maintain full adherence with strict loan eligibility and application criteria set out by the Regional Development Department of the Central Bank when providing the loans. 

“From loan assessment and vetting to forwarding, BOC’s stringent internal approval procedures fully complemented CBSL’s loan inspection process, ensuring a large number of loans received CBSL approval,” a BOC statement said. The working capital loans offered have allowed businesses of all sizes and across all industries, to continue operations unobstructed.  BOC said a sizable 58 percent of the loans disbursed by the bank as part of the programme have been to the SME service sector, with a further 33 percent to the agriculture sector.