'15-'19 Housing Scheme - 'Corrupt and Unsuccesful'

2015-2019 Housing Scheme Branded 'Corrupt and Unsuccessful'

by Staff Writer 06-08-2026 | 1:50 PM

COLOMBO (News 1st); A housing loan assistance programme implemented islandwide by the National Housing Development Authority between 2015 and 2019 for low and middle-income earners was marred by corruption, political influence and serious implementation failures, Deputy Minister of Housing, Construction and Water Supply T.B. Sarath told Parliament today (6).

The issue was raised during a parliamentary discussion in which National People's Power MP Susantha Kumara Navaratne questioned the effectiveness of housing schemes implemented under previous administrations.

Navaratne alleged that housing assistance programmes introduced through the Ministry of Housing during the 2015-2019 period had been presented as major public welfare initiatives but had ultimately left many beneficiaries struggling with debt.

He claimed that numerous recipients were unable to repay loans issued under the programme, while assistance that had been promoted as housing grants often amounted to only Rs. 136,000 or around Rs. 200,000, providing little practical support for home construction.

Responding to the concerns, Deputy Minister Sarath said the projects had not been designed primarily around the actual housing needs of beneficiaries, but were instead influenced in many instances by political considerations.

According to the Deputy Minister, investigations have revealed cases where housing loans had been issued to individuals linked to the political authority of the time, while in some instances multiple members of the same family had reportedly received loans.

He further stated that authorities are currently facing difficulties in obtaining complete and detailed records relating to many of the loans granted under the programme.

Sarath alleged that some allocations had been made under political influence and pressure, describing the projects as highly unsuccessful.

The Deputy Minister also revealed that some housing schemes had been constructed within wildlife zones, making it impossible to legally allocate those houses to the intended beneficiaries.

He claimed that there were housing villages containing 15, 20, 30 or even 40 houses where only a single house remained occupied, while many beneficiaries could no longer be traced.

The government is currently conducting an assessment of housing units in these settlements and identifying occupied houses, he said.

Sarath added that a proposal has already been submitted for the upcoming Budget to allocate a special financial assistance package for families currently residing in these housing schemes.

Criticising those responsible for the projects, the Deputy Minister said that while some now in the Opposition continue to comment extensively on international affairs, including conflicts in the Middle East, the housing programmes implemented under their watch had ultimately failed to deliver meaningful benefits to the intended recipients.