Lankaputhra Development Bank grants Rs 2b in loans

Lankaputhra Development Bank set up as the country's first State bank for development has made satisfactory progress during its first year in operations granting loans up to Rs. 2 billion, said Senior Manager- Business Development, Kennedy J. Michael.

He said promoting local industries, protecting the environment and sustaining agriculture and the farming community are the primary objectives of the bank.

The criteria in granting loans is proper and effective solid waste management. Loans were provided to institutions in 18 districts for various industrial activities.

Agriculture, agro based products, healthcare, textiles and garments, footwear products, metal engineering, rubber products and ceramics were some of the industries selected to grant loans, the Senior Manager said.

The textile and garment industry is not progressing adequately and many factories were closed in the past. The bank is focused on funding development activities of the textile and garment industry which was a key proposal in the 2007 Budget.

Footwear is another industry that the bank provides loans to purchase machinery up to Rs. 500,000. The bank is promoting the footwear industry to make Sri Lanka the regional hub. To promote the savings habit among children, the bank introduced the Lukmutu children's savings scheme granting a 10 percent interest.

Assistant Manager Business Development Deepika Navaratna said the State institutions could invest in the bank with the approval of the Ministry of Finance.

The Lankaputhra Development Bank which started operations with Rs. 1.5 billion has 105 employees. The bank has branches in Hambantota, Polonnaruwa and Tissamaharama.