• 2026 marks a historic record-breaking year for government-led housing construction
• No previous government has provided such extensive relief and care to affected citizens
• A government that chose to protect and support the people
• Disaster-hit families to receive a better life than before
– President
President Anura Kumara Dissanayake stated that 2026 will become the year in Sri Lanka’s history in which the highest number of houses are constructed with the state support.
The President pointed out that approximately 20,000 to 25,000 new houses will need to be constructed in the aftermath of the disaster and that together with the 31,000 housing units previously planned under the National Housing Development Authority, a total of around 50,000 to 55,000 houses will be constructed this year.
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, held this morning (09) at Alubadda village in the Malbeligala Grama Niladhari Division of the Galnewa Divisional Secretariat.
Under the first phase of the housing programme for families who lost their homes due to the Ditwah cyclone, assistance is being provided to households whose houses were completely destroyed by the disaster 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 and construction work on a new house was also ceremonially commenced under the patronage of the President.
Addressing the event, President Anura Kumara Dissanayake emphasised that at no point in Sri Lanka’s history have rulers intervened to care for the people by providing compensation on such a large scale. The President stressed that the current government has made a firm decision to prioritise the welfare of the people and reaffirmed its commitment to ensuring that those affected by the disaster are provided with a standard of living better than what they had before.
The President further noted that ensuring a good quality of life for the people requires stable income, quality education for children, good health, safe housing and mental well-being. He emphasised that the government is fully committed to delivering on all five of these priorities.
Addressing the gathering, President Anura Kumara Dissanayake further stated:
About three years ago, our country was forced to endure an extremely devastating economic crisis. Fuel and gas shortages brought the entire nation to the brink of economic collapse. We all know that this collapse was not caused by a natural disaster. Instead, it was the result of economic policies pursued for decades by successive rulers, coupled with the concentration of national wealth in the hands of a very small group, at the expense of the wider public.
Although the Treasury accumulated large sums of money, those resources were confined to a privileged few. It was for these reasons that the national economy collapsed. As a direct consequence, for the first time in Sri Lanka’s history, the people took to the streets and drove out leaders who once wielded unquestioned power.
After we came together to form a government, our first and most urgent challenge was to stabilise the country’s collapsing economy. We have been largely successful in achieving that objective. We must build a country where our children will not have to endure the hardships experienced by our parents. We cannot allow the suffering of one generation to be passed on to the next. Therefore, our responsibility at this moment is to create a country in which our children can live with dignity and opportunity.
Much of a country’s overall well-being depends on the strength of its economy. When an economy is strong, many other aspects of national life improve. Equally, when an economy collapses, crime, fraud and corruption increase and the rule of law weakens. That is why strengthening the economy is the most critical priority. Accordingly, we have worked steadily and systematically to rebuild Sri Lanka’s economy. By 2025, Sri Lanka achieved record highs across all major economic indicators. It marked the year with the highest government revenue, the lowest budget deficit since 1977, the highest export earnings, the largest remittance inflows from overseas Sri Lankans and the greatest number of tourist arrivals in the country’s history.
It was at a time when the economy was just beginning to recover that we were confronted with this natural disaster. While we cannot fully control natural calamities, we had to establish an economy strong enough to withstand their impact. This challenge, however, came at a moment when the economy was already on the rise. A World Bank survey had already highlighted that the damage to infrastructure alone amounted to USD 4.1 billion.
This posed a severe blow to the recovering economy. Yet, the government had no right to abandon those affected by the disaster or tell them to simply wait. As a government, we introduced a comprehensive recovery plan, the largest of its kind in Sri Lanka’s history, to rebuild the areas hit by the disaster. For the year 2026 alone, LKR 500 billion was allocated for disaster recovery, while LKR 72 billion was set aside in December 2025. We were committed to protecting the people and reviving the economy. Compensation was provided for crop losses and previously unclaimed subsidies were distributed to farmers. Relief was also extended to individuals engaged in livestock management and various industries. We continued to gather data on other affected areas to expand assistance. We were a government determined to prioritize the people. Nowhere in Sri Lanka’s history had rulers intervened in such large-scale relief efforts with this level of public focus. We carried out these efforts to ensure that the people were truly supported.
We have focused significant attention on the housing issue. Reports indicate that approximately 6,000 homes were completely destroyed, while an additional 17,000–18,000 homes, though not fully damaged, were deemed uninhabitable. Consequently, it will be necessary to construct an estimated 20,000–25,000 new homes to accommodate those affected.
In addition, the 2026 budget has allocated funds to construct another 31,000 homes. For those unable to build homes independently, the Housing Development Authority has planned an additional 10,000 homes under its ongoing projects. Moreover, even 16 years after the end of the war in 2009, there are still people living in camps without proper housing. To address this, the government has allocated LKR 2 million for a home to construct 2,500 homes for these families. Similarly, for the people in estate areas, the government is facilitating housing construction with assistance from India. It is in this context, while planning 31,000 new homes that the current disaster has made it necessary to construct additional 20,000–25,000 homes. Our goal is to provide housing that ensures a better quality of life for affected families. The allocated funds are being used specifically for this purpose and we urge the affected communities to cooperate so that construction can begin promptly.
We have several fundamental needs a decent income, quality education for our children, a healthy and fulfilling life, a good home and mental well-being. Without at least these five essentials, we cannot truly live as human beings. Therefore, the primary objective of our government is to ensure that these needs are met.
For a long time, no one has been satisfied with our country’s education system. It has been a burden for parents and a source of frustration for children. If the education system had been effective, we would have achieved far better outcomes. Educators have debated and analysed reforms to the system over extended periods and we have now implemented these new changes. However, some have begun spreading baseless criticisms and misinformation about these reforms. Our focus remains on providing children with quality education. We are committed to ensuring that even children growing up in poverty have access to a strong, effective education that equips them for the future.
Therefore, we must provide our children with internationally recognized, high-quality education. No matter the attempts to undermine these reforms, we are determined to implement them.
Today, we are launching this housing programme. We had originally planned to build 31,000 homes and with the current initiative, this number will increase to between 50,000 and 55,000. This will mark the highest number of homes constructed under government support in a single year in Sri Lanka’s history. Providing our citizens with quality housing is our foremost priority.
Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance
The government has launched a programme to promptly provide compensation for fully and partially damaged homes, business premises and agricultural lands, ensuring the restoration of affected livelihoods. Today marks an important step in this initiative.
To clean and rehabilitate homes damaged by flooding, LKR. 25,000 have already been disbursed, along with an additional grant of LKR 50,000. Thanks to prudent financial management and funds retained in the Treasury, the government was able to act swiftly to provide this vital assistance to the public.
Mr. Ranjith Wimalasuriya, Divisional Secretary, Anuradhapura District
A total of LKR. 05 million will be allocated per household for reconstruction, disbursed in three installments. Today, the first installment of LKR. 02 million is being released, followed by the second and third installments of LKR. 1.5 million each. I urge beneficiaries to use these funds solely for their intended purpose. Strict oversight will ensure that the assistance achieves the expected results.
The event was attended by Minister of Trade, Commerce, Food Security and Cooperative Development, Wasantha Samarasinghe, Governor of the North Central Province, Wasantha Jinadasa, Members of Parliament Thilina Tharuka Samarakoon, Susanta Kumara Navaratne, P.B.N.K. Palihena and Bhagya Sri Herath, as well as local Divisional Secretaries, government officials and community members from the region.
President’s Media Division (PMD)
09.01.2026
