Migrant workers will receive wider financial support through new housing loans and higher compensation for families of workers who die overseas.
The Sri Lanka Bureau of Foreign Employment (SLBFE) has introduced the “Ethera Diriya” housing loan scheme, while the government has also increased death compensation for eligible migrant workers to Rs.2 million.
The two measures were announced as the government expands welfare support for people working overseas and their families.
Minister Vijitha Herath speaking at the event
Housing Loans Up to Rs.10 Million
Under the Ethera Diriya scheme, migrant workers can obtain housing loans ranging from Rs.500,000 to Rs.10 million.
The SLBFE signed agreements with DFCC Bank and Union Bank on September 10 to begin the scheme. The agreements were signed under the patronage of Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath and Housing, Construction and Water Supply Minister Susil Ranasinghe.
Deputy Minister of Foreign Affairs and Foreign Employment Arun Hemachandra also attended the event.
The SLBFE plans to sign similar agreements with nine more banks, taking the total number of participating banks to 11.
Eligible workers can repay the loans over a period of up to 10 years. The loans can support housing needs, including the construction of homes.
SLBFE to Cover Part of Interest
A key part of the scheme is the SLBFE’s interest reimbursement support.
The bureau will reimburse participating banks for part of the interest charged on eligible loans under an approved system. The government has allocated Rs.126 million for this purpose in 2027.
The maximum annual interest rate covered under the scheme is 15%. If a participating bank charges more than 15%, the borrower must pay the additional interest.
However, the bank will remain responsible for deciding whether to approve a loan.
Applicants must apply through participating banks. The banks will assess their eligibility, repayment ability, credit history and collateral before approving or rejecting applications.
After a bank gives preliminary approval, the SLBFE will check the applicant’s registration with the bureau, overseas employment status, foreign remittances and other eligibility requirements.
The banks will then handle loan approval, payment and recovery. Meanwhile, the SLBFE will reimburse the eligible part of the interest under the scheme.
Banks will submit loan repayment details, interest calculations and reimbursement claims to the SLBFE every six months. The bureau will check those claims before paying the approved reimbursement into the relevant loan accounts.
The scheme aims to help migrant workers use their overseas earnings to meet housing needs through lower-cost financial facilities.
Death Compensation Raised to Rs.2 Million
At the same time, the government has taken steps to increase compensation paid to families of migrant workers who die while employed overseas.
The total compensation has been raised to Rs.2 million, compared with the previous SLBFE payment of Rs.600,000.
The change was highlighted at an event where Rs.70 million was distributed among the families of 50 migrant workers who had died while working overseas.
Minister Vijitha Herath said the previous compensation was not enough and welcomed the increase to Rs.2 million.
He said around 300,000 people leave the country each year for foreign employment, while about 250 migrant workers die each year due to various unfortunate circumstances while working overseas.
The minister also said the government has started a programme, along with several proposals, to reduce such incidents.
What are Remittances and Wider Welfare Support?
Migrant workers send nearly US$8 billion to the country each year, according to Minister Herath.
He said the SLBFE already provides several welfare programmes for migrant workers and their families, with further measures also being planned.
These include support for the children of migrant workers, such as school equipment and annual scholarship allowances.
The new housing loan scheme and higher death compensation therefore add two different forms of financial support: one helps workers meet a major housing need, while the other provides greater support to families after the loss of a worker overseas.
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Last modified: September 11, 2026
