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Indian-funded housing projects: Talks underway with Indian HC on Phase IV

Indian-funded housing projects: Talks underway with Indian HC on Phase IV

11 Jan 2026 | – By Faizer Shaheid


  • Only 1,300 out of 10,000 homes earmarked for plantations sector built thus far

Discussions are ongoing between the Government and the Indian High Commission regarding Phase IV of the Indian Housing Project, under which 4,700 houses are slated for construction across 18 districts, primarily targeting estate worker communities.

Ministry of Plantation and Community Infrastructure Secretary Prabath Chandrakeerthi stated that approvals had already been granted for 2,056 houses, while preparatory work, including land identification, beneficiary selection, and compliance with technical standards, was underway for the remaining units.

“The Indian Housing Project is one of the largest grant-supported initiatives undertaken by India in Sri Lanka and is designed to uplift underprivileged communities that have long faced housing shortages,” Chandrakeerthi said.

“Earlier phases focused on rebuilding homes in the Northern and Eastern Provinces for families affected by conflict and displacement, while the current focus on plantation areas aims to address decades-long deficiencies where many workers continue to live in overcrowded and deteriorating line rooms.”

Chandrakeerthi explained that Phase IV carried a total commitment of 10,000 houses for plantation sector workers and their families. 

“Out of the total, 1,300 houses were started last year and are being executed by two implementing agencies – the National Housing Development Authority and the State Engineering Corporation. These agencies have made steady progress, and we anticipate completion of these units by March this year,” he said.

“Simultaneously, work on the next 4,700 houses is being prepared to commence once preliminary requirements, including land identification and technical clearances, are finalised. For the remaining units, we have already pinpointed the districts and beneficiary selection is actively in progress.”

The districts earmarked for Phase IV include Kandy, Nuwara Eliya, Badulla, Ratnapura, Matara, and Galle – areas with dense plantation populations and, in some cases, high vulnerability to landslides and flooding.

“We take disaster risk assessment very seriously. All houses are constructed in line with detailed recommendations from the National Building Research Organisation to ensure that each structure meets strict safety and engineering standards,” Chandrakeerthi said.

“It is worth noting that none of the houses built so far under either Indian-funded or State-funded housing projects were damaged during recent extreme weather events, including Cyclone Ditwah, which highlights the resilience and suitability of these structures in vulnerable regions.”

Chandrakeerthi also sought to clarify reports of an additional Indian grant package: “There is no $ 50 million project currently known to the ministry. That figure refers specifically to Phase IV of the housing programme. Separately, a budgetary allocation of Rs. 750 million was earmarked last year for a proposed project covering education, health, and small-scale infrastructure in plantation areas. However, that allocation has not yet received approval from the Indian High Commission. They have requested detailed project proposals before moving forward. It is important that this Rs. 750 million allocation is not conflated with any US Dollar-denominated grant.”

Responding to claims that delays in the housing programme were caused by Government-side bottlenecks, Chandrakeerthi said the ministry was unaware of any such official statement from Indian officials.

“Coordination meetings are ongoing, and both sides are actively engaged in resolving practical implementation issues. The main challenge we face remains the release of suitable land from the Regional Plantation Companies (RPCs). While the RPCs have agreed in principle to provide land, there are often delays in the actual handover. We are working closely with them to ensure that the process is expedited,” he explained.

Despite these challenges, Chandrakeerthi expressed confidence in meeting the overall Phase IV timeline. “We are committed to completing the remaining 10,000 houses in stages, with the bulk of construction scheduled for this year and the balance to be completed next year. This project reflects our continued partnership with India and our shared goal of uplifting the living conditions of plantation communities, ensuring safe, resilient, and dignified housing for thousands of families.” 



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