The Cabinet of Ministers has approved an additional foreign exchange adjustment allowance of up to Rs. 2.5 million per year for students selected under the government’s overseas scholarship programme, following the recent depreciation of the Sri Lankan Rupee against major global currencies.

The allowance will be provided to ensure that students pursuing undergraduate studies at internationally ranked foreign universities are able to meet increased costs arising from exchange rate fluctuations.

The scholarship programme, introduced under the 2025 Budget, aims to support the country’s top-performing students in the 2024 GCE Advanced Level Examination by enabling them to pursue their first degree programmes overseas.

Under the scheme, each student is eligible to receive financial assistance of up to Rs. 20 million annually, with total funding capped at Rs. 80 million for the full four-year degree period.

Thirty-two students were selected for the programme based on their Advanced Level examination results. Nine students have already left Sri Lanka to begin their studies, while arrangements are underway for the remaining recipients to travel abroad.

Officials noted that the sharp depreciation of the Rupee has increased the cost of foreign currency payments, making the originally allocated funds insufficient for certain expenses faced by scholarship recipients.

The proposal to introduce the exchange rate adjustment allowance was submitted by the Prime Minister, in her capacity as Minister of Education, Higher Education and Vocational Education, and received Cabinet approval.