The Cabinet of Ministers has approved a proposal to provide relief to individuals who have pawned gold jewelry in banks.
Publishing the decisions from yesterday’s (22) Cabinet meeting, the Cabinet Office announced that the severe economic crisis in recent times has significantly impacted all sectors of the economy, leading to a sharp increase in gold pawning.
The outstanding amount of mortgage advances, which was approximately 210 billion rupees in 2019, has surged by 172% to around 571 billion rupees by March 2024. Given this situation, there is a recognized need to offer relief to low-income individuals who have taken mortgage advances from licensed banks, the statement added.
The proposal includes implementing a program to provide an interest subsidy of up to 10% per annum, funded by the Treasury, for mortgage advances not exceeding 100,000 rupees. This program will apply to loans taken by customers on or before June 30, 2024, from licensed banks.
The proposal, presented by President Ranil Wickremesinghe in his role as Minister of Economic Stabilization and National Policy, has received Cabinet approval.
