President Anura Kumara Dissanayake has announced a major housing development programme targeting the construction of 70,000 houses for low-income families, alongside Rs. 90 billion in supplementary funding for housing construction under the Ditwah Housing Project.

Presenting the 2027 Budget in Parliament today (12), the President said the Government aimed to improve living standards through integrated economic, social and physical development while ensuring a healthy urban environment.

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 earners.

The programme, which has already commenced, targets the construction of 10,000 houses in 2027. The financial assistance provided per house will be increased from Rs. 1 million to Rs. 1.5 million.

Accordingly, the Government has proposed increasing the allocation for the programme to Rs. 15 billion.

Meanwhile, the Government expects to allocate Rs. 90 billion through a Supplementary Estimate for housing construction under the Ditwah Housing Project.

Rs. 10 Billion to Resettle Families Displaced by Conflict

The Government has identified approximately 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 aimed to complete the resettlement of these families within the next two years.

An allocation of Rs. 6 billion has already been made, with a further Rs. 4 billion proposed for this purpose.

The Government will also accelerate the construction of 10,000 houses for the plantation community under a programme implemented with the assistance of the Government of India.

In addition, Rs. 1 billion has been allocated to provide housing assistance to families affected by Cyclone Ditwah who are not eligible for housing assistance under existing criteria.

The allocation will cover affected families in areas including 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 Abandoned Houses

The Government has also proposed Rs. 5 billion to assist eligible beneficiaries to complete houses that were abandoned midway through construction.

The programme will provide financial assistance of up to Rs. 500,000 per beneficiary to address difficulties faced by families whose housing projects, launched between 2015 and 2019 with assistance of Rs. 20,000 and Rs. 40,000, remain incomplete.

Rs. 26.82 Billion for Urban Housing Projects

A housing requirement of approximately 50,000 units has been identified among low-income urban families.

Of these, construction of more than 16,000 houses has been fully completed, while another 5,000 housing units remain partially completed.

The Government expects to complete the partially constructed housing projects at Torrington, Colombage Mawatha, Kolonnawa, Peliyagoda, Moratuwa, Maharagama and Dematagoda during 2027.

Construction of 59 new housing complexes is also expected to commence in the Meethotamulla and Wilgoda areas of Kurunegala.

A total allocation of Rs. 26.82 billion has been made for these housing development projects.

Meanwhile, the National Housing Development Authority plans to launch two new middle-income housing projects in Maligawatta and Yakkala in 2027, using a pre-sale model.

Rs. 7.7 Billion for Urban Development

The Government has also announced a major programme to transform towns into well-organised urban centres, with a focus on city branding and tourism development.

Ten towns — Jaffna, Matale, Hatton, Batticaloa, Chilaw, Thambuttegama, Vavuniya, Eheliyagoda, Badulla and Matara — have been identified for development under the programme.

An allocation of Rs. 2.7 billion has been made for these initiatives.

A further Rs. 5 billion has been proposed for development activities 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 projects are in addition to development activities already identified through project estimates totalling Rs. 65 billion.

Rs. 1.25 Billion for Urban Drainage and Flood Management

To strengthen flood prevention and drainage management in urban areas, the Government plans to obtain multipurpose machinery worth Rs. 1.25 billion for the Sri Lanka Land Development Corporation.

Of this amount, Rs. 625 million will be provided as Government equity capital.

The machinery will support the maintenance of drainage systems, small canals and 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 sector, private sector, banks and financial institutions to address housing needs among 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 fundamental to improving living standards and supporting the country's long-term development.