LKR 5 Million Concessionary Housing Loan for Public Servants (2026 Circular)

Unlock Your Dream Home: LKR 5 Million Government Housing Loan Facility (2026 Update)

Are you a public servant or a local government employee in Sri Lanka? Building or buying your dream home just got easier with the newly updated concessionary housing loan scheme.

Who is Eligible?

• Permanent and pensionable government or local government officers.
• Must have completed a minimum of 05 years of continuous service.
• Special Benefit: If both husband and wife are state employees, they are entitled to apply for two separate loans!

What Can You Use It For?

• Purchasing a plot of land.
• Constructing or renovating a house.
• Purchasing a ready-made apartment or house.

Concessionary Interest Rates (As per Circular 08/2026): The government highly subsidizes this loan. Based on the new circular effective from March 1, 2026, the interest rates you have to pay are exceptionally low:

• For the first LKR 3,000,000: Only 4% annual interest.
• For the remaining amount up to LKR 5,000,000: Only 2% annual interest. (The government Treasury pays the remainder of the bank's market interest rate on your behalf).

Maximum Loan Limit: The maximum loan amount you can obtain is your basic consolidated salary for 07 years (84 months) OR LKR 5,000,000—whichever amount is lower.

Official Document Reference & Download

• Document: Public Administration Circular No: 08/2026 (Housing & Property Loans for Public Officers)
• Official Source: Issued by the Ministry of Public Administration, Provincial Councils and Local Government, Sri Lanka.

Instructions: You can download and save a copy of the official circular for your personal reference before beginning your property search with us. If you are inquiring about this loan facility at your workplace or state banks (People's Bank, Bank of Ceylon, or NSB), please mention "Public Administration Circular 08/2026".

Download 👇👇👇👇  government-housing-loan-circular-2026
 

Disclaimer: Idam.lk is hosting this publicly available document strictly for the convenience and educational benefit of our users. We are not a government entity. For official interpretations, exact eligibility, and application procedures, please consult your Head of Department or the relevant state banking institution.

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