India expands housing initiative in Sri Lanka with 10,000 new homes

World Saturday 01/August/2026 18:02 PM
By: Agencies
India expands housing initiative in Sri Lanka with 10,000 new homes

COLOMBO: India has launched the fourth phase of its flagship housing initiative in Sri Lanka, beginning construction of 10,000 homes for underprivileged families as part of its long-standing development partnership with the island nation.

The latest phase of the Indian Housing Project (IHP) was marked by a foundation stone-laying ceremony for 57 houses at Kannavarella Estate in Sri Lanka's Badulla District. The project is being funded through grants from the Government of India and is aimed at improving living conditions for marginalized communities in the plantation sector.

The ceremony was attended by Sri Lanka's Minister of Plantation and Community Infrastructure, K.V. Samantha Vidyaratne, and India's Consul General in Hambantota, Harvinder Singh.

The fourth phase will see the construction of 10,000 houses across six provinces, primarily benefiting estate sector families. The broader Indian Housing Project envisages nearly 60,000 homes across Sri Lanka with financial assistance exceeding INR 18 billion.

Under the first two phases of the programme, about 46,000 houses were constructed or rehabilitated in the war-affected Northern and Eastern provinces, while the third phase delivered 4,000 houses to plantation workers. The current phase is expected to further strengthen housing security for vulnerable communities.

The housing initiative forms part of India's broader development assistance to Sri Lanka, particularly for the Indian Origin Tamil (IOT) community, which has played a key role in the country's plantation economy for more than two centuries.

During his visit to Sri Lanka in July 2023, Indian Prime Minister Narendra Modi announced a INR 750 million multi-sectoral grant package to support the socio-economic development of plantation communities, coinciding with the 200th anniversary of the arrival of Indian-origin Tamils in the country.

Beyond housing, India has supported several development projects in Sri Lanka, including the construction of the Dickoya Hospital, the introduction of Smart Classrooms for estate schools, the modernization of nine plantation sector schools and the development of the Seetha Eliya Temple.

The housing project comes as Sri Lanka continues its recovery from its worst economic crisis in decades, with both countries emphasizing cooperation in infrastructure development and community welfare. The initiative also reinforces India's "Neighbourhood First" policy and its commitment to supporting Sri Lanka's long-term economic recovery and social development.