Cabinet scraps ‘Viyathpura’ housing scheme for MPs affected by 2022 unrest

Friday, 5 September 2025 00:29 - - {{hitsCtrl.values.hits}}

The Cabinet of Ministers on Wednesday decided to abolish with immediate effect the concessional housing scheme under which MPs whose homes were destroyed during the May 2022 unrest were allowed to purchase Urban Development Authority (UDA) houses at subsidised rates.

Addressing the weekly post-Cabinet meeting media briefing yesterday, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said that the scheme had caused the UDA a financial loss of about Rs. 92.126 million and prevented the recovery of construction costs.

The scheme was introduced in the aftermath of the unrest on 9 May 2022, when mobs set fire to the residences of dozens of politicians, resulting in several deaths, including that of one MP. The Government later provided temporary accommodation for affected MPs by renting out 101 housing units in the Viyathpura Housing Complex.

While the initial plan approved by the then Cabinet was to rent the houses for one year, MPs later requested ownership. The Cabinet at the time agreed, allowing them to purchase the units at concessional terms—paying 25% of the sale price upfront and the balance over 15 years at an annual interest rate of 10%.

Dr. Jayatissa said although the units were valued at between Rs. 15.5 million and Rs. 22 million, they were offered to MPs at a reduced price of between Rs. 13.34 million and Rs. 18.21 million. By 31 December 2024, a total of 29 former MPs had already paid the 25% advance instalment to secure ownership under the scheme.

“If the 29 relevant MPs like, they can still purchase the houses, but only at the market rate,” he said, adding that full list of those who had already paid advances can be obtained from the National Housing Development Authority (NHDA).

The proposal to this effect was submitted by Urban Development, Construction and Housing Minister Aruna Karunathilake.