Cabinet clears next phase of Colombo Urban Regeneration Project with $ 158 m AIIB funding

Wednesday, 18 February 2026 00:24 - - {{hitsCtrl.values.hits}}

Transport, Highways and Urban Development Minister Bimal Rathnayake

The Cabinet of Ministers on Monday approved the next phase of the Urban Regeneration Project aimed at providing improved housing for underserved communities in Colombo, with funding support of $ 158 million from the Asian Infrastructure Investment Bank (AIIB).

The project is being implemented by the Urban Development Authority (UDA) under Government guidance to address the housing needs of families currently living in low-facility settlements within Colombo city.

Addressing the weekly post-Cabinet meeting media briefing yesterday, Minister Vijitha Herath said under phase II, a total of 4,074 housing units will be constructed across six housing schemes located in Colombage Mawatha, Stadium Gama, Ferguson, Apple Watte, Madampitiya and Obesekarapura.

He said the initiative is part of the broader Colombo Urban Regeneration framework designed to improve living standards while optimising urban land use.

Cabinet approval has been granted to provide eligible low-income beneficiary families with rights and benefits in line with the social safeguard guidelines of the AIIB. Each eligible household will contribute Rs. 350,000 as a nominal capital contribution toward the housing unit and Rs. 50,000 to a maintenance deposit fund established for the upkeep of the housing complexes.

“The Government will bear the deed registration and legal transfer costs associated with transferring ownership of the housing units to beneficiaries,” he said, adding that the project is expected to enhance living conditions for thousands of families while advancing structured urban renewal in Colombo.

The proposal to this effect was submitted by the Transport, Highways and Urban Development Minister Bimal Rathnayake.