BoC to develop 170 remote villages in the East - General Manager

by Surekha GALAGODA

[email protected]

The Bank of Ceylon (BoC) has identified 170 remote villages in the Eastern province to be developed and each BoC branch has been entrusted with 10 villages under the Poverty Alleviation Micro Finance Project (PAM).

BoC General Manager, B. A. C. Fernando said that under the PAM scheme customers will be initially educated on the savings habit for three months. Once it is completed the bank officers will analyse the skills and encourage them to form small groups. For example, people engaged in the same profession will be encouraged to form a group.

Thereafter they will be supported to develop the skills after which they will be given loans.

People in the East are keen to develop themselves and be independent but they have to be supported to develop their entrepreneurship prior to providing them loans. The objective of the BoC is not giving loans but developing the villages, said the General Manager.

The Central Bank has provided eight Community Development Assistants to support the PAM project. Training of participants and bank officers is done according to a plan.

The BoC, together with the National Livestock Development Board (NLDB) is supporting maize cultivation in the maize belt from Kantale to Moneragala.

The bank has cultivated 1,000 acres in Kantale on the outgrower basis while plans are under way to increase it to 2,000 acres. There are 400 outgrowers and funding is done by NCRCS.

The BoC offers loans under the Agro Livestock Development Credit Scheme for dairy farming and the maximum a customer can obtain is Rs. 400,000. Initial training for borrowers will be provided by the Veterinary surgeons through the Central Bank. Loans will be given for cross breeding of animals and for bio-gas units. Already 500-700 farmers have benefited under this scheme.

Krushi Navodaya offers loans for vegetable cultivation and three branches in the East including Kalawanchikudy, Valachchenai and Chenkaladi have been selected for the program. Already 1,000 farmers have obtained loans.

Fernando said that in addition to these schemes loans are given to purchase day boats, fishing gear, assist inland fishing and purchase of agricultural equipment.

Over 20,000 farmers in Ampara, the well known district for paddy cultivation will be given loans to grow paddy during the Maha season. The loans which the farmers are unable to pay have been restructured so that they don't fall prey to private lenders who charge exorbitant interest rates.

Prior to the East being liberated, the BoC had 17 branches and we have already opened two more branches after the area was liberated while nine more branches will be opened in the near future.

He said that there is much potential to develop the tourism sector and many large companies have already purchased land. "The BoC has not got involved in infrastructure development activities in the area and investors have not approached us as yet," said Fernando.