From Eelam to entrepreneurship!

reporting from Batticaloa

Forty-five rehabilitated former combatants given loans by Bank of Ceylon to start businesses; Union Bank opens branch in Batticaloa; Central Bank Governor pledges continued microfinance support    

Rehabilitated ex-combatants yesterday started a new chapter in their lives when they were granted special loans to begin businesses in Batticaloa.

They were presented the loans by Central Bank Governor Ajith Nivard Cabraal during a special ceremony to mark the occasion. The 45 ex-combatants were rehabilitated by the Sarvodaya organisation and were granted loans ranging from Rs.5000 - Rs.500, 000. The total of the loans given is Rs.1 million. This is the first phase of the loans scheme that is being implemented by the Bank of Ceylon. Central Bank and Sarvodaya are coordinating partners.

“This is a very important day. The Central Bank has always focused on brightening the lives of people in the north and east. Today you are all going to put your past behind you and move forward to become part of the economy of this country,” Cabraal said while addressing the gathering. He claimed that Central Bank is a catalyst for development and change, which would be a continuing focus of the organisation.

“Most political problems are a result of economic problems. If people have enough money then most of these issues are automatically solved,” he stressed. Many of the ex-combatants are keen to become motor mechanics or engage in work connected to electronics. At the moment there are 150 youths being rehabilitated at the Sarvodaya centre, which include tsunami, war and flood affected.

The governor also opened the Union Bank branch in Batticaloa at the start of his trip. This is the 23rd branch of the bank and it aims to target the small and medium enterprises in the region. Union Bank CEO Anil Amarasuriya noted that the target is to capture 15% of market share in the region and that they would initially focus on fisheries, agriculture and trade.                

Since 2009 the number of banking centres that have opened up in the Eastern Province is 64. Of these 32 are branches and the rest are service centres. In the north the number is 57 with 36 operating as branches. From these the government estimates that as much as Rs.2.5 billion has been disbursed to both provinces.  The Bank of Ceylon along with People’s Bank has increased their microfinance to equip households and small businesses with the chance of raising their living standards, the Central Bank Governor emphasised. He urged more banks to increase their lending and give communities access to finance so that they can contribute to the national economy.   

Flood stricken farmers want loan relief (head)

Farmers in the flood stricken Batticaloa District yesterday made an appeal to the Central Bank Governor to restructure the loan repayment schedule of affected farmers and give special loans for the Yala season.

During a speech made at People’s Bank in Batticaloa during a special tour made by Governor Ajith Nivard Cabraal to assess the prevalence of microfinance in the region, the Agriculture Director for the district made this appeal adding that it was necessary to recover from the devastation.

The Socio Economic and Planning Centre, Department of Agriculture in its recent crop forecast released in February stated the highest crop damage was reported from Batticaloa, which recorded 58,100 hectares or 97% from the sown extent of paddy. Another 70, 000 acres have been abandoned as a result of sand deposits after the floods.

A special loan scheme was introduced during the ceremony held at the Batticaloa branch of the People’s Bank where communities were collectively allowed to take loans. The first group of 80 people from Sathurukondai received their loans. Under the new scheme people of one community can get together and form groups between 30-80 and open a bank account of Rs.100, 000. This will act as collateral for the loans that the group takes collectively. Each member of the group acts as a guarantor for the others. The People’s Bank in Batticaloa has already loaned over Rs.1.3 billion since 2009.