TL;DR: The Interest Free Student Loan Scheme in Sri Lanka lets eligible students study an approved degree at a non-state institute, with the government paying the interest. The maximum loan ranges from Rs. 600,000 to Rs. 1,500,000 depending on the degree, plus an optional stipend loan. Repayment starts one year after you graduate. The 11th intake was for students who passed A/Ls in 2023, 2024 or 2025.
Applications are made online through the Ministry of Higher Education student loans portal.
Missing a state university place is not the end of the road. The Ministry of Higher Education runs the scheme, often called IFSLS, so qualified students can follow an approved degree at a non-state institute and pay for it after they graduate. This guide covers who can apply, how much you can borrow, how repayment works and how to get ready for the next intake.
What the scheme is
The Student Loans Division of the Ministry of Higher Education runs the scheme. It funds approved degree programs at non-state higher education institutes, known as NSHEIs. The Ministry's portal says the government bears the interest for the entire twelve-year loan period. You repay only what you borrowed.
According to news reports of the 11th intake, the scheme covered more than 129 degree programs at 16 degree-awarding institutions, in fields such as engineering technology, IT, science, commerce, humanities and arts. Applicants can select any number of approved programs.
Who can apply
For the 11th intake, the Ministry's portal and news reports of the official notice set out these conditions:
A/L year: passed the G.C.E. Advanced Level Examination in 2023, 2024 or 2025.
Results: at least three simple passes, in one sitting.
English: at least a simple pass in General English at A/L, or the O/L equivalent.
Common General Test: at least 30 marks.
Age: 25 years or below on the closing date, 27 September 2026.
Each intake sets its own A/L years and dates, so read the notice for the intake you are applying to.
How much you can borrow
| Item | What the Ministry's portal says |
| Tuition loan | Varies by degree stream and length, from Rs. 600,000 to Rs. 1,500,000 (10th intake onwards) |
| Stipend loan | Optional, up to Rs. 300,000 for a four-year degree or Rs. 225,000 for a three-year degree |
| Interest | Paid by the government for the full twelve-year loan period |
The tuition loan is paid against your approved degree program. If the program costs more than the loan limit, you or your family pay the difference, so ask the institute for its full fee before you choose.
How repayment works
Repayment does not start while you are studying. The Ministry's portal sets out this pattern:
Study period: no repayments.
Grace period: one year after your degree ends, still no repayments.
Repayment: for a four-year degree, 84 equal monthly instalments over seven years. For a three-year degree, 96 equal monthly instalments over eight years.
Because the government pays the interest, the total you repay is the amount you borrowed. The loan agreement is signed with two guarantors: a parent or close relative first, then a close relative or known person.
