Minister of Labour and Foreign Employment Manusha Nanayakkara said that the Cabinet has agreed to provide low interest loans up to Rs. 2 million to Sri Lankans working abroad at four percent interest. Efforts are being made to launch the loan scheme as soon as possible. The Minister said that the only criterion to be eligible for the credit facility is working abroad or starting a business in the country after returning from abroad.
The loan scheme will be implemented without creating any issue to the State and private banks when the loans are given at low interest rates.
If the loan interest given by a bank is 22 percent, the remaining interest loss incurred by the bank will be 18 percent, if it gives a loan to a migrant worker at an interest of 4 percent.
The Minister said the 18 percent loss incurred by the banks will be given by the Kuwait Compensation Fund of the Foreign Employment Bureau.
Minister Nanayakkara said that the Bureau has Rs. 5,000 million belonging to the Kuwait Compensation Fund, adding that they are providing maximum concessions and implementing many other schemes for migrant workers in addition to this loan scheme.
He said a voucher system is also being implemented to maintain the living conditions of migrant workers where there are economic difficulties, and Development Officers have already started collecting information through the Divisional Secretariats.
A proposal has already been made to give quotas in popular schools to the children of migrant workers in the future, the Minister added.