The Cabinet of Ministers has approved a new measure to offer interest relief to individuals who have pawned gold jewelry in banks. This initiative, announced by the Cabinet Office, aims to mitigate the economic hardships that have led to a sharp rise in gold pawning.

As reported by the Cabinet Office, mortgage advances on pawned gold have surged from 210 billion rupees in 2019 to approximately 571 billion rupees by March 2024, marking a 172% increase. To address this, the government will provide an interest subsidy of up to 10% per annum for mortgage advances not exceeding 100,000 rupees, applicable to loans taken on or before June 30, 2024.

The proposal, spearheaded by President Ranil Wickremesinghe in his role as Minister of Economic Stabilization and National Policy, has been approved to offer relief to low-income individuals severely affected by the economic crisis.