Home Sri Lanka Rs. 523.6M promotion cost of Sajith’s housing scheme triggers audit inquiry
Sri Lanka

Rs. 523.6M promotion cost of Sajith’s housing scheme triggers audit inquiry

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Housing and Construction Minister Sajith Premadasa unveiling the plaque to mark the inauguration of ‘Suramayagama’ under Semata Sevana programme in 2017. Photo: Mahinda P. Liyanage
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Health and Mass Media Minister Dr. Nalinda Jayatissa revealed that investigations are underway into the alleged misuse of Rs. 523.6 million spent on promotional activities for the ‘Semata Sevana’ housing project, implemented during the Yahapalana administration between 2015–2019.

Addressing the weekly Cabinet media briefing on Tuesday (15), Minister Jayatissa said both the Housing Ministry and the National Audit Office are conducting parallel probes into the matter, based on financial discrepancies uncovered in a report issued by the National Housing Development Authority (NHDA).

“This is not an isolated incident. Emerging information suggests that similar large-scale spending occurred on multiple promotional campaigns during the same period,” he said.

The Semata Sevana initiative, launched as a flagship rural housing development programme spearheaded by then-Minister Sajith Premadasa, had initially expected to establish 2,562 model villages across the island.

However, according to Minister Jayatissa, only 367 villages were actually completed and officially declared open, raising serious questions about project execution and accountability.

Under the scheme’s financial assistance programme, loans were extended to 25,453 beneficiaries, while an additional 28,633 individuals received various forms of support.

A total of Rs. 13 billion was disbursed in loans and grants during the project period.

However, the Minister noted that many beneficiaries have defaulted on loan repayments, and the Housing Ministry is now initiating recovery efforts to address the outstanding amounts.

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