LKR 5 Billion Allocated in Budget to Build 2,500 Houses: President Anura Kumara Dissanayake
15-Jan-2026.
President Anura Kumara Dissanayake stated that although the civil war ended in 2009, a large number of people who lost their homes due to the conflict are still living in displacement camps and temporary shelters in the Northern Province. He confirmed that LKR 5 billion has been allocated in the national budget to construct 2,500 houses and that this allocation has not been altered.
The President made these remarks while addressing the inauguration ceremony of the “Rebuilding Sri Lanka” national programme held at the Bandaranaike Memorial International Conference Hall on January 13.
He noted that securing additional funds without disrupting overall budgetary strategies was a challenge, and that existing legal provisions and the public mandate were used to address it. He emphasized that the government remains bound by the people’s mandate and will not yield to pressure from any external entity.
A supplementary allocation of LKR 500 billion was proposed specifically for disaster-related expenditure, with provisions for further allocations if required. Priority-based regional proposals can be funded without altering the long-term national development plan, he said.
During the initial phase of the disaster, rescue operations posed a major challenge. Approximately 700,000 families were affected in some manner, impacting nearly 2.4 million people. Around 6,000 houses were completely destroyed, while 110,000 suffered partial damage. More than 10,000 houses were identified as structurally unsafe despite not being damaged. In total, over 20,000 new houses need to be constructed.
Under the 2026 budget, plans are in place to build 31,000 new houses. The President reiterated that despite the end of the war in 2009, many displaced persons in the North continue to live in camps and temporary shelters, and the allocation of LKR 5 billion for 2,500 houses remains unchanged.
Additionally, a community-supported housing programme has been developed to assist economically vulnerable rural populations. Under this initiative, 10,000 houses will be constructed this year with a budgetary allocation of LKR 10 billion. Each house will receive LKR 1 million in assistance alongside community participation. Altogether, more than 50,000 houses are expected to be built in 2026.
The World Bank has conducted a preliminary assessment of the disaster, estimating losses at USD 4.1 billion. However, based on projects identified so far, the government estimates total costs at approximately USD 2.8 billion. Further projects are yet to be identified, the President said, adding that current estimates focus on reconstruction costs rather than the total scale of destruction.
