LDB launches Kandurata Navodaya

The Kandurata Navodaya self-employment loan scheme was launched by Lankaputhra Development Bank (LDB) last week.

LDB Chairman Upali Liyanage and President of the National Democratic Union (NDU) K. V. Marathaveeran signed an MoU last week in Colombo to commence the scheme.

Chairman LDB Upali Liyanage and NDU President K.V. Marathaveeran exchange the MoU. Pic: Lalith C. Gamage

Under the scheme loans will be given to launch self-employment ventures in the estate sector. The scheme will be initially implemented in 25 selected estates in Hatton in the Nuwara Eliya district, extended to Nuwara Eliya and subsequently to the entire island depending on its success. It is being implemented by the Kandy branch of the bank.

Initially, loans will be given to 500 estate labourers and the loans will vary between Rs. 10,000 and Rs. 25,000. The interest rate is 12 percent per annum while the repayment period is two years.

President of the National Democratic Union Marathaveeran said that this is the first time an organised loan scheme is being implemented in the estate sector to improve the living standards of the estate population.

He said that the estate sector resorts to strikes to get their demands which results in their living standards deteriorating further. Self-employment ventures will help improve living standards and also help the estate population to use their spare time in a useful manner. The Bank together with the NDU will provide the necessary training, find the markets and most importantly, ensure that they have financial discipline by helping them maintain accounts.

General Manager of the Bank Lasantha Amarasekera said that the scheme will turn a new page in the micro finance sector and fulfil another pledge of the Mahinda Chinthana.

He said that Rs 2.5 b has been given as loans.

Chief Financial Officer Sumeda Edirisuriya said that the bank is expecting a profit of Rs 60m for last year while the Non Performing Loan ratio had reduced to 48 percent from the 60 percent in 2009.

SG