Tea Smallholders Loan Scheme

In an unparalleled effort to support the backbone of Sri Lanka’s tea production industry, Seylan Bank, the Bank with a Heart, has become one of the Participating Financial Institutions in a scheme introduced by the Asian Development Bank (ADB) and the Ministry of Finance to develop the island’s tea smallholders.

Eligible Sectors

  • New planting
  • Replanting
  • Infilling
  • Establishment of Irrigation systems
  • Nursery Development
  • Water and Soil management
  • Mechanization

Eligible Projects

  • Economically viable projects.
  • Should be a Sri Lankan citizen.
  • Land extent should not exceed 50 acres.
  • In order to qualify for a loan a recommendation letter from the Tea Small Holdings Development Authority (TSHDA) for land extent below 10 acres or from Sri Lanka Tea Board (SLTB) for land extent between 10 acres and 50 acres.


  • Tea smallholders who use loan proceeds for new planting and replanting are eligible to obtain 10% principal pay-down.
    • An additional 10% grant for capital pay down will be provided for the eligible tea smallholders who completed the financial literacy training and demonstrated the practice of record keeping.

Grant Conditions

  • The maximum sub-loan size is LKR 5,000,000
  • The tea smallholders with landholding less than ten (10) acres are eligible for this grant.
  • A Sub-borrower is qualified for the grant only once.
  • The sub-borrowers, who have been provided the grant facility, are not allowed early settlement of the respective loans.

Maximum Loan Amount

  •  LKR 30,000,000.00

Repayment Period

  • 10 Years

Interest Rate

Tenure Rate %p.a.
10 Years 7.00%