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Press briefing of Cabinet Decision taken on 2020-09-28
Working Capital requirement for the maintenance of the Buffer Stock of rice for the period from October 2020 to January 2021

-Since rice production takes place in the country from October to January every year, the rice requirement during the said period is accomplished through the buffer stock of rice maintained from the rice produced during the other months. Accordingly, it has been estimated that a sum of Rs 2,241 million will be required to maintain the buffer stock of rice which is approximately 3% of the rice requirement for the period of four (04) months from October 2020 to January 2021, i.e. 25,000 metric tons including the cost of storage. Therefore, the proposal made by the Minister of Trade for the issuance of a Letter of Comfort by the General Treasury enabling to obtain a working capital loan for a period of four (04) months from the People’s Bank to Lanka Sathosa so that the said activity can be carried out by the Lanka Sathosa, was approved by the Cabinet.