Rs. 2 million housing aid approved for displaced families in Northern and Eastern provinces

By Chaturanga Pradeep Samarawickrama

The Cabinet of Ministers has approved an increase in financial assistance for displaced families in Sri Lanka’s Northern and Eastern provinces, enabling them to construct permanent homes.   

Since 2009, 919,450 people from 277,167 families have been resettled in their original villages. Yet, as of 1 January 2026, 13,069 families still lack housing ownership.   

Previously, assistance ranged from Rs. 900,000 for smaller homes to Rs. 1.5 million for larger homes. Considering rising construction costs and the low-income status of many beneficiaries, the Cabinet has now raised the aid to Rs. 2 million for a 550-square-foot house, regardless of family size.   

The decision was made following a progress review meeting chaired by the President, ensuring that resettled families can build homes that meet prescribed standards and improve living conditions.