SME paddy millers, co-ops to get loans at 7% under Yala season credit scheme

The government would roll out a Rs.6.5 billion concessional loan scheme from today to support the small and medium-scale (SME) paddy millers and cooperative societies in purchasing paddy during the upcoming Yala season, the Development Finance Department said.

The programme will run from July 01 to November 15, 2025, based on a Cabinet decision made in December last year.

The scheme, aimed at maintaining a stable price for farmers, will offer loans up to Rs.50 million at a 7 percent annual interest rate. The loans must be repaid within 180 days and will be accessible only to SME paddy millers and cooperatives, with a maximum daily milling capacity of 25 metric tonnes.

The eligible borrowers are required to hold a valid business registration and a licence issued by the Paddy Marketing Board. The loans will be facilitated through 14 participating financial institutions: Bank of Ceylon, People’s Bank, Regional Development Bank, Hatton National Bank PLC, Seylan Bank PLC, Sampath Bank Ltd, Commercial Bank of Ceylon PLC, DFCC Bank PLC, National Development Bank PLC, Nations Trust Bank, Sanasa Development Bank Ltd, Amana Bank PLC, Cargills Bank PLC and Pan Asia Banking Corporation PLC.

The purchases under the scheme will be made at the minimum purchase price set by the Agriculture Department. 

During the 2024/25 Maha season, a similar scheme disbursed approximately Rs.6.85 billion in pledge loans to millers and cooperatives.