Commonwealth_ The Sri Lankan government has decided to review its ambitious housing project aimed at rehabilitating war-affected families in the country’s Northern Province. The initiative, which proposed the construction of 65,000 prefabricated metal houses, has come under scrutiny amid serious allegations of corruption and concerns about its cost-effectiveness and transparency.
The decision to pause the project was made during a Cabinet meeting chaired by President Maithripala Sirisena. According to National Integration Minister Mano Ganesan, both President Sirisena and Prime Minister Ranil Wickremesinghe will jointly lead a committee to reassess the viability and integrity of the housing initiative. This move comes after significant political and public pressure, including critical debates in Parliament and vocal opposition from local leaders and civil society.
The housing project was originally approved by the Cabinet in February and was intended to provide much-needed shelter for internally displaced persons (IDPs) who had suffered during the country’s decades-long civil conflict. The plan involved the construction of prefabricated metal houses equipped with solar panels, water tanks, and tube wells. The total cost was estimated at USD 1 billion, with funding expected to come from government grants provided by France and Spain.
However, the project quickly became mired in controversy. Allegations of corruption were raised in Parliament, particularly concerning the procurement process and the apparent lack of transparency in awarding the contract. During a debate held at the end of March, the Tamil National Alliance (TNA), a major political force representing the Tamil population, voiced serious concerns about the quality and durability of the houses being built. They argued that the prefabricated metal structures were not suitable for the local climate and lifestyle and suggested that more traditional construction methods would be preferable and more sustainable.
One of the focal points of the controversy was speculation that the contract for the project had been awarded to global steel giant ArcelorMittal, led by Indian-born businessman Lakshmi Mittal. However, Minister Ganesan clarified that no such contract had been formally awarded. He stated that the project was being halted as a precautionary measure while the review process is underway.
The Chief Minister of the Northern Province also voiced strong opposition to the project, criticizing both the high cost and the lack of consultation with local stakeholders. He argued that the per-unit cost of a house under the proposed scheme was approximately 2.1 million Sri Lankan rupees, significantly higher than alternative housing initiatives. In comparison, the Indian government-supported housing project in the same region had managed to deliver homes at a much lower cost, around 0.5 million Sri Lankan rupees per unit.
The backlash has highlighted broader concerns about governance, accountability, and inclusivity in post-war reconstruction efforts. Many community leaders and activists have called for more transparent processes that prioritize the needs and preferences of local residents. They argue that the government should work closely with the communities affected, ensuring that projects intended to aid in their recovery are designed with their input and aligned with their long-term well-being.
Minister Ganesan noted that by choosing to defer the decision, President Sirisena had demonstrated sensitivity to the concerns of the Northern Province’s residents. He emphasized that the government remains committed to supporting the rehabilitation of war-affected families but will now ensure that any large-scale project meets proper standards of quality, affordability, and transparency.
The review of the housing project marks a crucial moment in Sri Lanka’s post-conflict development journey. As the government reevaluates its approach, many hope this pause will lead to a more inclusive and effective strategy that genuinely serves the needs of the people it aims to help.
