A Memorandum of Understanding signed by the two companies paves the way for farmers who obtain loans from the Bank to purchase inter-cultivators and irrigation systems from AgStar to receive exclusive discounts and other benefits.
The Bank said AgStar would offer a 5% discount to the Bank’s customers, as well as free advisory services for potential buyers and free installation under this agreement.
Smart agriculture equipment can help farmers adapt to climate variability by providing tools for precision watering, soil management, and pest control.
These practices make farms more resilient to drought, extreme weather and other climate impacts, protecting farmers’ investments and yields.
Beyond just lending money, this partnership extends to training, after-sales support, and maintenance of the equipment ensuring that farmers know how to effectively use and maintain the technology, which maximises productivity and extends the equipment's lifespan, the Bank said.
Commercial Bank’s Diribala Green Development Loan Scheme aims to encourage sustainable agricultural practices.
It supporting the purchase of smart, eco-friendly machinery that helps farmers adopt practices that are less harmful to the environment, such as precision agriculture which uses resources more efficiently and reduces waste.
The Bank has also launched several other initiatives to drive the adoption of modern and smart agriculture practices in Sri Lanka to improve productivity, address manpower shortages, reduce costs, and promote sustainability and food security.
AgStar PLC, a member of the Browns Group, is a leader in importing, blending and marketing of fertiliser products, agro chemicals, seeds and agri machinery.
Commercial Bank is the first Sri Lankan bank to be listed among the Top 1000 Banks of the World and has the highest market capitalization in the Banking Sector in the Colombo Stock Exchange (CSE).
The Bank is the largest lender to Sri Lanka’s SME sector, is a leader in digital innovation and is Sri Lanka’s first 100% carbon neutral bank. Commercial Bank operates a strategically located network of branches and automated machines island-wide, and has the widest international footprint among Sri Lankan banks, with 20 outlets in Bangladesh, a Microfinance company in Myanmar, and a fully-fledged Tier I Bank with a majority stake in the Maldives.
Photo caption Commercial Bank’s Chief Operating Officer Mr S. Prabagar and the Executive Deputy Chairman of AgStar PLC Mr Indika Gunawardhana exchange the agreement in the presence of senior representatives of the two companies.