Two MOUs were signed between India and Sri Lanka for the development of housing infrastructure in Sri Lanka. Accordingly, an Indian grant of Rs. 600 million will be utilised for the construction of 1,200 houses through 50 model villages. This is in addition to the 1,200 houses (50 model villages) that are already under construction in collaboration with the Ministry of Housing and Construction.

The construction of houses will be based on an owner driven model with Indian grant assistance. Low income landless and homeless individuals will be the beneficiaries of this project, and a cash grant of 500,000 rupees will be provided to each beneficiary in instalments, linked to the stages of construction of the house.

India’s overall commitment for building houses in Sri Lanka stands at almost 63,000 and Indian financial commitment under grants for housing in Sri Lanka currently stands at around US$ 550 million.