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Cabinet cancels housing concessions for MPs
Colombo, Sept. 4 (Daily Mirror) - The Cabinet has approved to abolish the concessional payment scheme granted to former Members of Parliament (MPs) for the purchase of houses from the Viyathpura Housing Complex.
In July 2022, Cabinet approval was first granted to provide 101 housing units from the complex on a rental basis for one year to MPs who had lost their homes during the unrest of May 9, 2022. However, in July 2024, following requests from the MPs, Cabinet approved the sale of these units at a reduced price.
While the houses are valued for the general public between Rs. 15.5 million and Rs. 22 million, MPs were allowed to purchase them at concessionary rates ranging from Rs. 13.34 million to Rs. 18.21 million. Under the scheme, 25% of the purchase price was to be paid upfront, with the balance to be settled over 15 years at an annual interest rate of 10%.
By December 31, 2024, a total of 29 MPs had deposited the 25% advance payment. However, the Urban Development Authority (UDA) reported a loss of Rs. 92.126 million due to the scheme.
The Cabinet has now decided to abolish the concessional payment method with immediate effect. If the MPs concerned agree, the houses will instead be made available to the general public at the previously approved concessionary prices.
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