Cooperatives and Internal Trade Minister of Sri Lanka Johnston Fernando is to request State banks to write off non-performing loans owed to them by the cooperatives in the country.
The cooperatives in the country currently owe a sum close to Rs. 1.9 billion to State banks.
The highest amount of Rs. 1.17 billion is owed by the cooperatives to the People’s Bank.
Fernando is to make the request from the Cabinet of Ministers due to the heavy debt burden of the cooperatives that has affected their smooth functioning.
The Minister has said that a Cabinet memorandum on the matter has already been submitted to the Cabinet of Ministers with the names of the persons responsible for the situation.
According to Fernando, certain decisions of the cost of living committee and the non-functioning of cooperatives in the north and east since 2004 have resulted in the debt issue.