Annual Report 2008 - Ministry of Finance and Planning

7. Development Finance
271
The increasing trend in world market prices of all fertilizers
compelled the Government to increase the budgetary
allocation of Rs. 15,000 million with a supplementary budget
of Rs. 11,800 million altogether totaling to Rs. Mn. 26,800
for fertilizer subsidy during the year 2008. This is almost
135 percent increase when compared with the last year’s
commitment of the government for the same.
Chart 7.5
maintaining of savings accounts and other similar deposit
accounts. The SLSB has taken steps to settle deposit
liabilities up to Rs.100,000/- with effect from June 2008.
The Bank has settled deposits of 3879 depositors valued at
Rs.185 million up to December 31st 2008.
After the assets and liabilities of defaulted Pramuka Bank
were taken over, the Bank had to make a strenuous effort
on reconstructing the accounts of Pramuka Bank. Since
the recovery of loans granted by Pramuka Bank considered
to be one of the critical success factors of the Bank, the
recovery process of loans and advances granted by Pramuka
bank have been accelerated while reactivating Pramuka
bank borrowers, establishing an institutional structure
for monitoring recoveries, and disposing the non-yielding
assets. The Bank has made considerable effort to recover
dues from defaulters and was able to recover Rs. 202 million
for the period ending December 31st 2008.
Further, the SLSB has given top priority to cater to the banking
needs of small depositors by extending its campaign to
However, realizing the long term negative impacts of the
continued use of chemical fertilizers and the increasing
commitment by the Government, several programmes
have been launched to promote the production of organic
fertilizers and to encourage the farmers to use organic
fertilizers wherever possible in appropriate quantities with
chemical fertilizers. For the above purpose a Rs. 500 million
allocation was made available during the year.
Chart 7.6
The Sri Lanka Savings Bank (SLSB)
The Sri Lanka Savings Bank (SLSB) was established on
July 7th 2006 as a public limited liability company under
the Companies Act of No. 1982 and registered as a licensed
specialized bank. The SLSB which is a wholly owned state
bank commenced its operation on March 10th 2008 at
No.110, D S Senanayake Mw., Colombo 08.
The primary objectives of the Bank are to provide relief to
depositors of the defaulted Pramuka Bank and opening and
muster savings from small time businesses covering shops,
boutiques, traders, vendors and so on through its Door to
Door programme. Currently more than 400 customers have
enrolled in the programme from Borella, Punchi Borella and
Narahenpita vicinities.
Ministry of Finance and Planning Sri Lanka
Annual Report 2008