The Prosperity Loan Scheme (Saubagya)

The Central Bank of Sri Lanka (CBSL) has introduced a loan scheme under the name of Prosperity (Saubagya) for the purpose of providing credit facilities for agriculture, livestock, micro, small and medium scale enterprises (MSMEs) and MSMEs affected by disaster in the Island. Credit under the scheme will be provided to eligible sub-borrowers through Participatory Financial Institutions (PFIs) i.e. Licensed Commercial Banks (LCBs) and Licensed Specialised Banks (LSBs) selected for the implementation of the scheme. For this purpose, CBSL has established a Revolving Loan Fund in the Regional Development Department (RDD) of the CBSL with an initial amount of Rs.500 million.


Maximum loan limit

Rs.25 mn per sub projects.

Equity Contribution

At least 15 percent of estimated sub project cost shall be provided by the sub borrower as equity in cash or in kind.

Bank Loan

85 percent of the total estimated cost of the project/enterprises.


The CBSL will refinance 100 percent of the loan amount disbursed by PFIs subject to the upper limits given at 3.2.

Rate of interest on refinance loans to PFIs

4 percent per annum

Rate of interest for sub-loans

9 percent per annum

Grace period

Maximum of 6 months commencing from the date of disbursement of the first instalment subject to the nature of the sub-project.
The grace period is extended up to a maximum of 12 months for the loans granted under the scheme for cultivation of the perennial crops, such as passion fruits, subject to the nature of the project.

Repayment period of sub-loans

Maximum of 5 year period depending on the nature of the sub-project

Date of implementation

The scheme in effective from 22nd March 2010

Areas of operation

All island