Loan scheme to coax foreign currency depositors

Minister of trade, Bandula Gunawardena told TimesOnline that he is to make a Cabinet proposal to provide a loan scheme for migrant workers who send over 100 US dollars per month for one whole yesr to Sri Lankan Banks.

He said that he has indicated to the President that the Central Bank’s procedure of paying 10 rupees extra for a US dollar to attract more foreign currency creates more issues.

Minister explained that when the Central Bank (CB) provides more rupees for foreign currency the black market dealers also increase the amount they pay for foreign currency, and therefore banks will not be able to attract more deposits at the end.

Mr Gunawrdena said that according to the loan scheme, the migrant worker who deposits 100 dollars per month for an year in a state bank would be eligible to have a Rs 2.5 million loan and the first million rupees of the loan would be interest free.

“Accordingly, if 200 dollars are deposited in a state bank on a monthly basis for a duration of an year, the migrant worker is eligible to have a Rs 5 million loan,” he said.