FIN344: Credit Risk Management The “Vistas of Prosperity and Splendour” National Policy Framework affirms that in order to produce a healthy and productive citizenry, the government must ensure the right of the people to access a non-toxic and balanced diet. To achieve this objective the government has taken measures to ensure that only organic fertilizer would be used in the agriculture sector


FIN344: Credit Risk Management

The “Vistas of Prosperity and Splendour” National Policy Framework affirms that in order to produce a healthy and productive citizenry, the government must ensure the right of the people to access a non-toxic and balanced diet. To achieve this objective the government has taken measures to ensure that only organic fertilizer would be used in the agriculture sector in the country in the future. President Rajapaksa emphasized that the program should be implemented for the benefit of future generations, notwithstanding criticisms from some sections of society.

The press release issued by the President’s Office in this regard can be accessed at The Sri Lankan Cabinet of Minister had given the green light to establish at least one organic fertilizer manufacturing center per each Divisional Secretariat. Therefore, a project has been planned/designed to implement an organic fertilizer production project by furnishing the essential fundamental capital from the Land Reformation Commission Fund, the so manufactured organic fertilizer to be purchased by the Ministry of Agriculture and distributed among the farmers.

The banks already formulated Credit schemes to finance commencing organic fertilizer manufacturing projects. The management of your bank had made a policy decision to intervein this proposal under the SME finance scheme to establish 25 small and medium scale Organic Fertilizer manufacturing projects in the branch’s servicing areas.

You have been entrusted by your management to prepare a feasibility study on the Organic Fertilizer Manufacturing industry and lending requirements basically on

following areas.

(a) Industry and Market study

(b) Technical study

(c) Financial needs analysis

(d) Risk analysis and mitigating techniques.

(e) Profitability forecast.

(f) Project viability analysis

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