The government has acknowledged a growing housing crisis, with nearly 900,000 families lacking permanent homes across the country.
The revelation comes amid reports of over 100,000 temporary and unsafe housing units scattered in rural and low-income communities.
Minister of Housing and Construction Dr. Susil Ranasinghe said the affected families could be divided into several categories, including working couples living in parental homes and low-income families residing in temporary shelters. “These are the people who need government subsidies the most,” he added.
The Ministry of Urban Development, Construction, and Housing has allocated Rs. 4 billion to support low-income families in building permanent houses, with the initiative expected to be completed by the end of this year.
In 2025 alone, the government provided Rs. 1 million each to 3,500 low-income families to construct proper homes, with over 2,000 houses already completed and inaugurated.
An additional Rs. 500 million has been earmarked to assist another 500 families, including households with members with disabilities or individuals suffering from kidney disease, bringing the total number of houses under construction to 4,000.
The Department of Census and Statistics (DCS), in its 2024 Census of Population and Housing Preliminary Report, highlighted that more than 100,000 occupied housing units still have walls made of mud and stone, and roofs crafted from palmyra leaves, cadjan, or straw.
Despite government support, inadequate housing remains a pressing social challenge, particularly for low-income and rural communities, many of whom continue to live in makeshift shelters or overcrowded conditions lacking basic facilities such as clean water, proper sanitation, and stable roofing.
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