The Central Bank of Sri Lanka said that Chairmen of the two state banks and boards of directors should make the decision as to whether loans will be granted to purchase paddy for this Yala Season or not.
A top official said that the Central Bank will not intervene in the decision since the process of granting loans to the Paddy Marketing Board for purchasing paddy is a commercial task. Heads of relevant institutions and policy makers should work together to provide a solution to the problem that has arisen regarding the provision of bank loans to the Paddy Marketing Board to purchase paddy this year. Loans given by state banks to purchase paddy have not been repaid as scheduled. Accordingly, it is also reported that it is a problematic situation to continuously provide loans through the banking system, in this manner.
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