Publishing the Cabinet decisions taken at the yesterday’s (22) Cabinet meeting, the Cabinet Office announced that the severe economic crisis in the country during the recent past has directly and indirectly affected all sectors of the economy, and as a result, the pawning of gold has increased rapidly.

The outstanding amount of mortgage advances, which was around 210 billion rupees in 2019, has shown a growth of 172% to around Rs 571 billion by March 2024. In view of that situation, the need to provide relief to low-income individuals who have obtained mortgage advances from licensed banks has been identified, it added.

Accordingly, it has been proposed to implement a suitable programme to provide an interest subsidy by the Treasury subject to a maximum of 10% per annum for mortgage advances not exceeding Rs.100,000/- taken by customers on or before 30 June 2024 from licensed banks on an individual basis.

The proposal presented by President Ranil Wickremesinghe as the Minister of Economic Stabilization and National Policy has received the Cabinet approval.