Sri Lanka to launch largest single-year housing drive with 31,318 units in 2026
Daily FT: Housing, Construction and Water Supply Deputy Minister T.B. Sarath has announced that the Government will construct 31,318 houses in 2026, making it the largest programme ever implemented within a single year.
Addressing a media briefing, he said Rs. 44 billion has been allocated under the 2026 Budget for the national housing initiative titled “A Place of Our Own – A Beautiful Life.” The first phase of houses under this programme will be officially inaugurated on 16 January in the Meesalai Gramaseva Division in Chavakachcheri, Jaffna, under the patronage of President Anura Kumara Dissanayake.
“The said programme spans all districts and provinces, covering public sector employees, low- and middle-income families, plantation workers, artists, journalists, and sports personnel, ensuring broad-based social inclusion,” the Deputy Minister said.
He noted that Rs. 10.2 billion has been allocated for housing projects targeting low-income families, while Rs. 5 billion has been earmarked for people displaced by war-related conflicts.
In response to expert recommendations and updated cost estimates, he said the Government has increased the construction grant for 2,500 houses in the North and East for conflict-affected families from Rs. 1.5 million last year to Rs. 2 million per unit this year.
He said the programme will be implemented with the support of multiple State institutions as well as international partners and agencies. Of the total houses planned, 15,601 units will be constructed through the National Housing Development Authority (NHDA). In addition, 1,254 houses will be built with Indian assistance, in collaboration with the Plantation and Community Infrastructure Ministry.
“The massive housing drive is expected to generate employment, stimulate the construction sector, and significantly improve living standards across the country in 2026,” Deputy Minister Sarath said.
Housing, Construction and Water Supply Ministry Secretary Eng. Kumudu Lal Bogahawatta said the Ministry achieved over 90% progress in its projects in 2025, expressing confidence that the ambitious 2026 targets would be met.
Responding to queries, he confirmed that National Building Research Organisation (NBRO) approvals have been obtained for housing projects in the hill country and noted that these initiatives are being implemented separately from post-Cyclone Ditwah reconstruction projects.
NHDA Chairman Aravinda Srinatha said applications for the 15,601 NHDA houses, each valued at Rs. 1 million will be evaluated by the second week of next month, after which funds will be released to beneficiaries in phases to ensure timely completion by end-October 2026.
OSL take:
Sri Lanka’s ongoing economic expansion has resulted in the expansion of the country’s housing industry creating many business/investment opportunities. However, these opportunities have seen further expansion following last year’s destruction witnessed by Cyclone Ditwah. Hence, the Sri Lankan government’s move to launch the largest single-year housing drive this year has opened many business/investment opportunities in the housing sector while creating an overall expansion in the country’s construction industry. The opportunities created by the largest single-year housing drive are manifold and range from the construction of houses to township development and the development of infrastructure and supplementary infrastructure facilities to meet the increasing demand. Foreign businesses/investors could therefore look at taking charge of construction work to supply technical and technological expertise required by the project. Foreign businesses could also look at engaging in the housing construction sector and related fields by forming partnerships or joint ventures with local businesses in the sector.
| Article Code : | VBS/AT/20260116/Z_2 |