Saturday, 12 October 2013 00:00
Amana Bank recently sponsored the National Agribusiness Awards organised by the National Agribusiness Council in recognition of the performance and contribution by the formal business sector towards the development of agribusiness in Sri Lanka. Amana Bank is a strong supporter of individuals and companies involved in the agribusiness sector by providing comprehensive financial solutions to cater to specific requirements. The bank houses dedicated SME Banking Units to support the industry.
Speaking at the National Agribusiness Awards ceremony held at the BMICH premises, the bank’s Managing Director/CEO, Faizal Salieh stated that “Banks generally shy away from financing the farmer mainly due to the volatility of cash flows arising from harvests being prone to the vagaries of the weather. In order to secure themselves from the associated risks, banks had traditionally relied on gold and jewellery owned by the farmers as a pledge. Accordingly pawning had been a way of financing farmers but with the rapid decline in gold prices in recent times this avenue of financing was also drying up,” Salieh said. “The agriculture sector is an important sector of the economy. The banking sector now has to re-examine the traditional model of financing and respond with an appropriate method to support the requirements of the people who fill our paddy fields.”