The government plans to invest idle collections from the newly reintroduced Sugar Development Levy (SDL) in Treasury bills, bonds, and call deposit accounts. This signals the State’s expectation of a low absorption rate of the funds meant to support key programmes, including factory upgrades, infrastructure maintenance, research, and credit to cane growers.
Bonds are medium- to long-term government securities, which indicates that the government’s collections through the reintroduced SDL are likely to grow at a faster rate than disbursements amid tighter conditions for borrowers.
