COLOMBO: The Sri Lankan government has announced an immediate cancellation of all crop loans taken by farmers, following requests from several farmer associations, according to the President's Media Division (PMD) on Tuesday.

The PMD noted that this decision was made to provide financial relief and support to farmers.

In a separate press statement earlier on Tuesday, the PMD said the country's gross domestic product (GDP) increased in 2023, reflecting an improvement in the overall economic situation, Xinhua news agency reported.

According to official data, the agriculture sector contributes approximately 7 percent to the national GDP, and over 30 percent of Sri Lankans are employed in the agricultural sector.