Govt. mulls 2027 Budget funding to revive stalled housing projects

Friday, 31 July 2026 00:05 -     - {{hitsCtrl.values.hits}}

 


 

  • Nearly 5,000 unfinished units commenced by previous administrations under review 
  • Separate program planned to help 2,000 families complete partially built homes

The Government is considering allocating funding through the 2027 Budget to complete nearly 5,000 abandoned housing units, as it seeks to revive stalled projects and expand the country’s housing stock.

Housing, Construction and Water Supply Minister Dr. Susil Ranasinghe said the proposed funding would be guided by recommendations from a committee appointed to assess housing projects initiated under previous administrations but left incomplete.

The proposal was discussed at a meeting of the Ministerial Consultative Committee on Housing, Construction and Water Supply held in Parliament under the Minister’s chairmanship.

Dr. Ranasinghe said many housing projects were abandoned after loan and grant funding allocated for their implementation was not fully disbursed, leaving thousands of housing units unfinished.

He said a five-member committee, co-chaired by two former Secretaries to the Ministry, has been tasked with identifying projects that can be completed and determining which housing units are already in a condition suitable for occupation.

According to the Minister, the committee has begun collecting information on the affected projects, assessing the condition of the housing units and preparing recommendations on the most appropriate course of action.

He said final decisions on the future of the abandoned projects would be taken after the committee submits its recommendations.

Separately, the Minister announced plans to launch a programme next year to assist families requiring financial support to complete partially constructed houses. The initiative is expected to benefit around 2,000 families.

Members of Parliament attending the consultative committee meeting also raised housing and water supply issues affecting their electorates.

The Ministry further agreed to convene a special meeting with relevant stakeholders to discuss housing-related issues, including housing projects for low-income families in the Colombo District.

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