Sri Lankan migrant workers can obtain housing loans ranging from Rs. 500,000 to Rs. 10 million under a newly launched financial assistance programme introduced by the Sri Lanka Bureau of Foreign Employment (SLBFE).

The initiative, known as the ‘Ethera Diriya’ Migrant Workers Housing Loan Scheme, aims to help overseas workers use their foreign earnings to build homes and meet other housing needs.

The programme was officially launched on September 10 following the signing of Memoranda of Understanding (MoUs) between the SLBFE and two participating banks, DFCC Bank and Union Bank. The signing ceremony was attended by Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath and Housing, Construction and Water Supply Minister Dr. Susil Ranasinghe.

The SLBFE said agreements would also be signed with nine additional banking institutions, bringing the total number of participating banks to 11.

Loans with Flexible Repayment Terms

Under the scheme, eligible migrant workers can apply for housing loans of up to Rs. 10 million, with a minimum loan amount of Rs. 500,000. Borrowers will be allowed a maximum repayment period of 10 years.

A key feature of the programme is an interest reimbursement facility through which the SLBFE will cover an eligible portion of the interest charged on loans, subject to the approved conditions. The Government has allocated Rs. 126 million for this purpose in 2027.

The maximum annual interest rate considered under the scheme is 15 per cent. If a participating bank charges an interest rate above this limit, the borrower will be responsible for paying the additional interest.

Application and Approval Process

Applicants must submit their loan requests through a participating bank. Each bank will assess the applicant’s eligibility, repayment capacity, credit history and available collateral before making a lending decision.

Applications that receive preliminary approval will then be forwarded to the SLBFE for verification. The Bureau will check the applicant’s registration status, overseas employment details, foreign remittances and compliance with the scheme’s eligibility requirements.

Participating banks will be responsible for approving and disbursing loans, as well as collecting repayments. The SLBFE will handle the reimbursement of the eligible interest component.

Banks must submit repayment records, interest calculations and reimbursement claims to the Bureau every six months. Once the claims are verified, the approved reimbursement will be credited to the relevant loan accounts.

Supporting Migrant Workers and Their Families

The SLBFE said the scheme was introduced to help Sri Lankan workers employed overseas convert their earnings into long-term housing security for themselves and their families.

Deputy Minister of Foreign Affairs and Foreign Employment Arun Hemachandra, SLBFE Chairman Kosala Wickramasinghe and other officials were also present at the agreement-signing ceremony.

The initiative is expected to provide eligible migrant workers with greater access to housing finance while supporting their efforts to establish stable homes through income earned abroad.