Divi Neguma Banks envisioned in new Bill

by Dhaneshi YATAWARA

The Government hopes to set up Divi Neguma Community Based Banks and Banking Communities under the recently drafted Bill to establish a new Department for Divi Neguma Development. The Divi Neguma Community based banks will be set up covering the area of authority of one or more Divi Neguma community based organisations.

Economic Development Minister Basil Rajapaksa recently presented in Parliament the Bill to set up a new Department for Divi Neguma Development. The new department will be established , as proposed, by amalgamating the Samurdhi Authority, Southern Development Authority and the Udarata Development Authority.

By setting up these banks the Ministry plans to promote micro-financial services for Divi Neguma beneficiaries. This would help encourage the savings habit among beneficiaries, to develop the investment potential which in turn would provide credit facilities to the beneficiaries. Two funds, the Divi Neguma Development Fund and the Divi Neguma Revolving Fund will be set up under the system.

Divi Neguma Community Based Organisations in villages will be set up to provide a coordinating network at district and national level.

The proposed Department for Divi Neguma development will be the authority to supervise, monitor, control and manage Divi Neguma community based organisations.

All officials in the authorities including over 27,000 Samurdhi officers will be absorbed into the new Department and they would be eligible for pensions.