Sri Lanka to build record 55,000 houses with state support in 2026

Sri Lanka President Anura Kumara Dissanayake said that 2026 will mark the highest number of houses ever built with state support in the country’s history, with around 50,000 to 55,000 homes set to be constructed nationwide.

The President stated that around 20,000 to 25,000 new houses will be required following the recent disaster, and when combined with the 31,000 housing units already planned under the National Housing Development Authority, the total number of houses to be built this year will reach an unprecedented level.

President Anura Kumara Dissanayake made these remarks while addressing the inaugural ceremony of PROJECT 5M, the compensation and housing construction programme for fully damaged houses under the Rebuilding Sri Lanka initiative. The event was held this morning (December 09), at Alubadda village in the Malbeligala Grama Niladhari Division of the Galnewa Divisional Secretariat.

Under the first phase of the programme for families who lost their homes due to the Ditwah cyclone, assistance is being provided to households whose houses were completely destroyed and can be rebuilt at the same location. Accordingly, compensation was granted for 26 fully damaged houses in the Galnewa, Palagala, Palugaswewa, Ipalogama and Thirappane Divisional Secretariat divisions of the Anuradhapura District. Construction work on a new house was also ceremonially launched under the patronage of the President.

Addressing the gathering, the President said that never before in Sri Lanka’s history had such large scale compensation been provided to care for the people. He stressed that the current government has taken a firm decision to place the welfare of the public at the forefront and to ensure that families affected by the disaster are provided with a better standard of living than they had before.

The President noted that a good quality of life depends on five key areas stable income, quality education for children, good health, safe housing and mental well being. He emphasized that the government is fully committed to delivering all five priorities.

Reflecting on the past, President Anura Kumara Dissanayake said the country endured a severe economic crisis about three years ago, caused not by a natural disaster but by long standing economic policies and the concentration of wealth among a small group. He said fuel and gas shortages pushed the nation to the brink and led to a historic public uprising that removed leaders who once held unchecked power.

He stated that after forming the government, the most urgent task was to stabilise the collapsing economy, which he said has largely been achieved. The President added that the goal now is to ensure that future generations do not inherit the hardships faced by their parents and can live with dignity and opportunity.

The President said that by 2025 Sri Lanka reached record highs in several key economic indicators, including government revenue, export earnings, remittances and tourist arrivals, while recording the lowest budget deficit since 1977. He noted that just as the economy was recovering, the country faced a natural disaster, with a World Bank survey estimating infrastructure damage alone at USD 4.1 billion.

Despite this setback, the President said the government introduced the largest recovery plan in Sri Lanka’s history. For 2026, LKR 500 billion has been allocated for disaster recovery, with an additional LKR 72 billion set aside in December 2025. Compensation has been provided for crop losses, farmers have received previously unclaimed subsidies and relief has been extended to those involved in livestock and other industries.

He said around 6,000 homes were completely destroyed, while another 17,000 to 18,000 houses were left uninhabitable, making the construction of 20,000 to 25,000 new homes essential. In addition, the 2026 Budget has allocated funds to build 31,000 houses, while the Housing Development Authority plans another 10,000 homes for those unable to build on their own.

The President also noted that 2,500 houses will be built for families still living in camps 16 years after the end of the war, with LKR 2 million allocated per house. Housing projects for estate communities are also being supported with assistance from India.

Secretary to the Ministry of Finance, Dr Harshana Suriyapperuma, said a programme has been launched to provide prompt compensation for fully and partially damaged homes, businesses and agricultural lands. He said LKR 25,000 has already been paid for cleaning flooded homes, along with an additional LKR 50,000 grant, made possible through sound financial management.

Anuradhapura District Divisional Secretary, Ranjith Wimalasuriya, said LKR 5 million will be allocated per household for reconstruction, paid in three instalments. The first instalment of LKR 2 million was released today, followed by two instalments of LKR 1.5 million each. He urged beneficiaries to use the funds strictly for reconstruction, noting that close monitoring will be carried out.

The event was attended by Minister of Trade, Commerce, Food Security and Cooperative Development Wasantha Samarasinghe; North Central Province Governor Wasantha Jinadasa; Members of Parliament Thilina Tharuka Samarakoon, Susanta Kumara Navaratne, P B N K Palihena and Bhagya Sri Herath, along with divisional secretaries, government officials and local community members.