The government has proposed a housing loan of up to Rs. 5 million for migrant workers, with part of the interest paid by the state and the Sri Lanka Bureau of Foreign Employment (SLBFE), under the 2027 Budget.

President Anura Kumara Dissanayake, who presented the Budget, said Rs. 67,687 million has been allocated in 2027 for interest subsidies and refinancing to banks. He said this is expected to provide Rs. 174 billion in concessionary loans to entrepreneurs through State and private banks.

Under the migrant worker housing scheme, an interest subsidy of 10 percent would apply to the first Rs. 3 million and 5 percent to the remaining Rs. 2 million. On the first Rs. 3 million, the Government would bear 6 percent and the SLBFE 4 percent. On the remaining Rs. 2 million, the Government would bear 3 percent and the SLBFE 2 percent. Rs. 1,000 million has been proposed for the Government’s share in 2027.

Other schemes announced in the same part of the Budget speech target small businesses, farmers, fishing and tourism.

  • Entrepreneurs running home-based tourist accommodation could borrow up to Rs. 2 million at an annual interest rate of 3 percent, to improve existing facilities or start new ones. Rs. 100 million is proposed as a first phase for the subsidy, and loans of Rs. 7,500 million are expected.
  • Large-scale fisheries industrialists with export potential, fish product suppliers and makers of boats and fishing gear could borrow up to Rs. 500 million through banks at 5 percent. Rs. 1,000 million is proposed for the subsidy, with loans of Rs. 15,000 million expected.
  • Entrepreneurs in rural areas could borrow up to Rs. 5 million through the Samurdhi Bank at 4 percent, but must give jobs to at least five Aswesuma beneficiaries to qualify. Rs. 200 million is proposed for the subsidy, with loans of Rs. 5,000 million expected.
  • Small and medium-scale paddy mill owners would get an interest-free pledge loan scheme from 2027 to buy paddy at the Government guaranteed price, providing Rs. 20,000 million in financing.
  • Women-headed families in rural areas could take group loans of up to Rs. 1 million at 3 percent through the Samurdhi Bank.

The Government will also give an interest subsidy on a further Rs. 20,000 million in loans under the Re-MSME Plus refinance scheme for micro, small and medium enterprises, on top of the Rs. 30,000 million already allocated, at an interest rate of 5 percent. Rs. 200 million is proposed as a first phase. Fisheries businesses would qualify on business turnover alone.

Background

Budget proposals in Sri Lanka are debated in Parliament and put to a vote before they become law, so the details of each scheme can still change. The debate on the 2027 Budget is under way, and the Opposition has criticised parts of the Budget.

The SLBFE is the State body that registers and regulates Sri Lankans who go abroad for work. Aswesuma is the Government’s welfare payment programme for low-income families, and the Samurdhi Bank is a State-linked bank that lends to rural households and small businesses.

What it means

If Parliament approves the proposals, Sri Lankans working abroad would be able to borrow for a home at a lower cost than a standard housing loan.

For rural entrepreneurs, the Aswesuma hiring condition ties access to the Samurdhi Bank loans to creating jobs for welfare recipients. Applicants for any of the schemes will need to check with banks and the relevant State agencies for eligibility rules and application dates once the Budget is passed.