Rs. 92 Mn Loss Triggers Cabinet to Cancel MP Housing Concessions

COLOMBO (News 1st); The Cabinet of Ministers has approved the immediate cancellation of concessionary housing benefits previously granted to 29 Members of Parliament under the Viyathpura housing project.

The Viyathpura housing complex, developed by the Urban Development Authority (UDA), was initially offered on a rental basis for one year to MPs who lost their homes during the unrest on May 9, 2022. 

However, in July 2024, Cabinet approval was granted to allow these MPs to purchase the units at significantly reduced prices, ranging from Rs. 13.34 million to Rs. 18.21 million, compared to the market value of Rs. 15.5 million to Rs. 22 million.

Under the scheme, MPs were required to pay 25% upfront, with the remaining balance payable over 15 years at a 10% interest rate. By December 31, 2024, 29 MPs had made the initial deposit, triggering a loss of Rs. 92.126 million to the UDA.

In response, the Cabinet has now approved a proposal by the Minister of Urban Development, Construction, and Housing to abolish the payment scheme, provided the MPs agree to release the housing units for public purchase under the same concessionary terms.