By Saman Indrajith
Opposition and SJB leader Sajith Premadasa speaking in Parliament yesterday lambasted the government for not taking action to ensure education rights of hundreds of students who had applied for interest free loans to enter two private universities.
Premadasa said that the students who had applied for interest free loans to study at the KAATSU International for Undergraduate-studies (KIU) and the Horizon Campus had been left high and dry because the government banks had not released the loans. The banks cited the non-payment of loans by some former students as the reason for not releasing the money to them.
“These banks have given billions of rupees as loans to politically-connected businessmen without guarantors. While their crony businessmen are allowed to go scot-free, innocent students are made to pay for an offence they have not committed, Premadasa said.
Leader of the House and Education Minister Susil Premajayantha said that the interest free loans for students to enroll at private universities scheme had been introduced by the incumbent President in 2017. Six batches of students had completed their university education under this scheme. The seventh batch of students was to be enrolled. About 5,000 students study in private universities with interest free loans.
A meeting of Treasury officials, and top officials of the Bank of Ceylon and People’s Bank was convened at the Presidential Secretariat recently to address the problem. It was found that around 200 students of the first and second batches had not settled their loans. As such, the banks are reluctant to release new loans. They are now asking for two more guarantors whose portfolios would meet their stipulations to consider releasing the loans. It might take a couple more weeks to sort this out, the minister said.
