The Central Bank has introduced soft loans for Agriculture and Animal Husbandry to help dairy farmers engaged in milk production and milk related industries.

Under this project small scale farmers will get a maximum of Rs.4 lakhs at the annual interest of 8% and maximum of Rs.300 million at annual interest of 14% for milk related industries.

Around 7000 dairy farmers have been benefited by this programme and it is intended to establish 20,000 milk cows control units throughout the island.

The Bank is expected to release Rs.5000 million to Commercial Banks for the purpose. Loans will be given on reduced interest from the deposits of State and private banks, said Additional Director of Regional Development Department of the Central Bank Mr. M.S.K.Dharmawardhana.

The loan which will be granted to repay a maximum 5 year period could be used to set up cattle shed, factory, bio-gas unit, buying cows, buying cattle food and drugs, agricultural machineries, setting up stores, chilling room and transport facilities.

In 2007, 19% of the country’s requirements had been produced locally. In 2010 it has been increased to 38% and it is expected to reach the target of meeting 50% fresh milk need of the country in the year 2015.