- Housing and Construction Ministry to assist Land Ministry and Urban Development-related authorities
- For purposes of the oversight of pricing of lands, houses, housing schemes
In a bid to tackle the escalating cost of living in the context of property ownership, the Housing and Construction Ministry has expressed its readiness to assist the Land Ministry and the Urban Development-related authorities in implementing regulatory reforms aimed at controlling the country's land-related issues.
Speaking to The Daily Morning yesterday (17), the Deputy Housing and Construction Minister, T.B. Sarath said the Ministry is prepared to collaborate with the Land Ministry and the Urban Development-related authorities to translate Parliamentary proposals into action. He said that, "As suggested in Parliament, a regulatory body to oversee the pricing of lands, houses, and housing schemes is a critical necessity for the future of this country. The Housing and Construction Ministry will fully support the Urban Development-related authorities in making these suggestions a reality," he said.
The call for intervention follows a statement made in Parliament earlier this month (February 2026). The Deputy Urban Development Minister Eranga Gunasekara raised the alarm over the unchecked surge in property values, which he attributed directly to the absence of a dedicated pricing regulator. Addressing the House on 6 February, Gunasekara outlined that, "A situation has arisen where the prices of lands, houses, and housing schemes have begun to escalate sharply". He elaborated that this market volatility is a direct consequence of the "non-availability of a regulating body." Further, he characterised the current market dynamics as deeply problematic. He has mentioned that he identifies this situation as a "mafia". Gunasekara has stressed that "immediate intervention to address this issue is needed" to protect prospective homeowners and to stabilise the sector.
Sri Lanka's property market has experienced a dramatic transformation since the economic crisis of 2022, evolving from a sector in distress to one characterised by soaring prices that have placed homeownership beyond the reach of most citizens. According to the latest Numbeo Property Investment Index, Colombo has been ranked as the world's most unaffordable City for homebuyers this year (in 2026), recording a price-to-income ratio of 55.1 - the highest among 395 cities monitored globally. This means that it would take over 55 years of a household's entire income to purchase a standard apartment, assuming no other expenses.