A dispute between the Colombo Municipal Council (CMC) and the Urban Development Authority (UDA) over land has delayed the China-funded housing scheme for low-income city dwellers, a minister said.

Housing and Construction Minister Prasanna Ranatunga said both institutions should reach an understanding regarding the land in the Dematagoda area for the project to be implemented.

The UDA took over these two plots of land in 2019, but the CMC took legal action.

However, the judiciary has informed both parties to settle the dispute amicably as two state bodies.

China has also requested the land dispute to be resolved before the implementation of the project.