Several rice mill owners have defaulted loan settlements

By Dayaratne Embogama 

Heads of state banks in Anuradhapura said several rice mill owners had defaulted settlement of loans obtained by them to purchase paddy. 

They pointed out that the outstanding loan instalments amounted to Rs.3,000 million granted in 2016 and 2017. 
Assistant Manager of Bank of Ceylon ,Anuradhapura branch Mahinda Bandara said the defaulters had agreed before court to settle the loans and they are in a position to pay. He pointed out that several of them had failed due to the CORONA pandemic but others are running their businesses. 

Meanwhile, President of Medium and Small Sale Rice Mill Owners ‘Association U. K. Semasinghe said the rice mill owners owed about Rs.3,000 million to the banks but it was not their fault. 

“Rice mill owners all over the country had obtained loans to purchase paddy. They have defaulted loan instalments. Prominent personalities in the government including several ministers and MPs who obtained loans and stored paddy are responsible for it. Meanwhile, rice was imported in almost unlimited quantities and used even as forage. This resulted in huge losses to the rice mill owners. We made representations to the bank authorities in this regard but they are yet to take a decision” he further said. 

• Prominent personalities in the government including several ministers and MPs who obtained loans and stored paddy are responsible for it