Sri Lanka turns to microfinance to rebuild war zone

COLOMBO, July 13 (Reuters) - Sri Lanka's government on Monday launched a $26 million microfinance loan programme to spur local agriculture and business in the former northern war zone, part of the president's plan to resettle 300,000 displaced people.

Dubbed the "Awakening North", the Central Bank said the 3 billion rupee ($26.12 million) loan plan will support "the resumption of economic activities in agriculture, livestock, fisheries, micro and small enterprises."

President Mahinda Rajapaksa has staked reconciling Sri Lanka after a 25-year war with the Tamil Tiger separatists on rebuilding the economy in the north and resettling the 300,000 members of the Tamil minority from there who are now in camps.
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