President launches ‘Project 5M’ housing drive

Saturday, 10 January 2026 00:00 - - {{hitsCtrl.values.hits}}

The Government yesterday launched ‘Project 5M,’ a large-scale compensation and housing reconstruction program under the ‘Rebuilding Sri Lanka’ initiative, with President Anura Kumara Dissanayake stating that 2026 would mark the highest number of houses built with State support in Sri Lanka’s history.

Speaking at the inaugural ceremony held at Alubadda village in the Galnewa Divisional Secretariat area, the President said an estimated 20,000-25,000 new houses would be required to resettle families affected by Cyclone Ditwah. Combined with 31,000 housing units already planned under the National Housing Development Authority’s program, total State-supported housing construction in 2026 is expected to reach between 50,000 and 55,000 units.

The first phase of ‘Project 5M’ targets families whose houses were fully destroyed and can be rebuilt on the same land. Compensation and construction work commenced yesterday for 26 houses across the Galnewa, Palagala, Palugaswewa, Ipalogama, and Thirappane Divisional Secretariat divisions in the Anuradhapura District.

The President said the scale of the intervention was unprecedented, adding that the Government had taken a policy decision to prioritise citizen welfare and ensure that families affected by the disaster would be resettled with a better standard of living than before. He said the Government’s approach was anchored on five essentials: stable incomes, quality education, good health, safe housing, and mental well-being.

Reflecting on the broader economic context, the President said Sri Lanka’s recent economic collapse was the result of decades of flawed policy choices and concentration of wealth, rather than a natural disaster. He said stabilising the economy had been the Government’s first priority after assuming office, noting that by 2025, the country had recorded its highest-ever Government revenue, export earnings, remittances, and tourist arrivals, alongside the lowest budget deficit since 1977.

He said the disaster struck just as the economy was beginning to recover, with World Bank estimates placing infrastructure damage alone at $ 4.1 billion. Despite the shock, the Government moved ahead with what he described as the largest disaster recovery program in Sri Lanka’s history, allocating Rs. 500 billion for recovery in 2026 and a further Rs. 72 billion in December 2025.

Finance Ministry Secretary Dr. Harshana Suriyapperuma said a structured compensation framework had been introduced to cover fully and partially damaged houses, business premises, and agricultural land. He said Rs. 25,000 had already been disbursed for cleaning and rehabilitation of flood-affected homes, together with an additional Rs. 50,000 grant, enabled by funds retained in the Treasury through tighter fiscal management.

Anuradhapura Divisional Secretary Ranjith Wimalasooriya said each household eligible for reconstruction would receive Rs. 5 million in three tranches, with Rs. 2 million released as the first instalment and two subsequent payments of Rs. 1.5 million each. He said strict monitoring mechanisms would be in place to ensure funds were used solely for reconstruction.

The event was attended by Trade, Commerce, Food Security and Cooperative Development Minister Wasantha Samarasinghe, North Central Province Governor Wasantha Jinadasa, several MPs, senior officials, and local community representatives.