The Government plans to construct 70,000 houses for low-income families under a nationwide housing programme, while allocating an additional Rs. 90 billion for housing construction under the Ditwah Housing Project, President Anura Kumara Dissanayake announced.
Presenting the 2027 Budget in Parliament Yesterday (12), the President said the initiatives were aimed at improving living standards through integrated economic, social and physical development while creating healthier urban environments.
Under the Government’s ‘A Place of One’s Own – A Beautiful Life’ programme, 70,000 houses are expected to be constructed to address the housing needs of low-income households.
The programme, which has already commenced, targets the construction of 10,000 houses in 2027. Financial assistance per house will be increased from Rs. 1 million to Rs. 1.5 million, with the total allocation for the programme proposed to rise to Rs. 15 billion.
Meanwhile, the Government expects to provide Rs. 90 billion through a Supplementary Estimate for housing construction under the Ditwah Housing Project.
Rs. 10 billion for families displaced by conflict
The Government has identified around 13,000 families displaced by the armed conflict in the Northern and Eastern Provinces who have yet to be resettled.
President Dissanayake said the Government intended to complete their resettlement within the next two years. While Rs. 6 billion has already been allocated, a further Rs. 4 billion has been proposed for the programme.
The Government also plans to accelerate the construction of 10,000 houses for the plantation community under a programme implemented with assistance from the Government of India.
In addition, Rs. 1 billion has been allocated to support families affected by Cyclone Ditwah who do not qualify for housing assistance under the existing criteria.
The assistance will cover affected families in Abaranchimulla, Serakkuliya, Mangalapura, Kandasamy Nagar and Nithya Nagar in Vavuniya, as well as areas in Polonnaruwa, Mullaitivu, Tissamaharama, Divulapitiya and Dimbulagala.
Rs. 5 billion to complete unfinished houses
A further Rs. 5 billion has been proposed to help eligible beneficiaries complete houses that were abandoned during construction.
Under the programme, beneficiaries will be eligible for financial assistance of up to Rs. 500,000. It is intended to support families whose housing projects, initiated between 2015 and 2019 with assistance of Rs. 20,000 and Rs. 40,000, remain unfinished.
Rs. 26.82 billion for urban housing development
The Government has identified a requirement for approximately 50,000 housing units among low-income urban families.
Construction of more than 16,000 houses has already been completed, while around 5,000 units remain partially constructed.
The Government expects to complete these unfinished housing projects in Torrington, Colombage Mawatha, Kolonnawa, Peliyagoda, Moratuwa, Maharagama and Dematagoda during 2027.
Construction of 59 new housing complexes is also expected to begin in the Meethotamulla and Wilgoda areas of Kurunegala.
A total of Rs. 26.82 billion has been allocated for these housing development initiatives.
Meanwhile, the National Housing Development Authority plans to launch two new middle-income housing projects in Maligawatta and Yakkala in 2027 under a pre-sale model.
Rs. 7.7 billion for urban development
The Government has also proposed a programme to develop towns into well-organised urban centres, with an emphasis on city branding and tourism.
Ten towns — Jaffna, Matale, Hatton, Batticaloa, Chilaw, Thambuttegama, Vavuniya, Eheliyagoda, Badulla and Matara — have been selected for development, with Rs. 2.7 billion allocated for the initiative.
A further Rs. 5 billion has been proposed for development work in 19 towns, including Trincomalee, Kantale, Kalmunai, Dehiwala, Kalutara, Panadura, Matugama, Maharagama, Ratnapura, Kegalle, Bandarawela, Ella, Galle, Akuressa, Kurunegala, Puttalam, Nattandiya, Kiribathgoda and Nuwara Eliya.
These initiatives are additional to development projects already identified through estimates amounting to Rs. 65 billion.
Rs. 1.25 billion for urban drainage and flood management
To improve drainage and flood management in urban areas, the Government plans to provide the Sri Lanka Land Development Corporation with multipurpose machinery worth Rs. 1.25 billion.
Of this amount, Rs. 625 million will be provided as Government equity capital.
The equipment will be used to maintain drainage systems and small canals and support emergency operations during floods, particularly in low-lying urban areas.
10,000 apartments planned over five years
The Government also plans to introduce a joint housing programme involving the public and private sectors, banks and financial institutions to address the housing needs of public and private sector employees and self-employed individuals.
Under the initiative, facilities will be provided to support the construction of 10,000 apartment units in major cities over the next five years.
The President said access to secure housing and a healthy urban environment remained essential to improving living standards and supporting the country’s long-term development.
