The government is moving forward with a major housing project to build 1,996 housing units for low-income families currently living in underserved areas of Colombo and its suburbs, with the support of a grant from China. The major resettlement project is aimed at improving the living standards of these communities while eliminating informal settlements in the city, according to the Urban and Rural Development Ministry.

Additionally, the project also targets the liberation of lands in the city, which could be used for rehousing, commercial, mixed-use development and recreational purposes, in line with the Colombo City Development Plan. The new housing units under the project will be built in the form of multi-story apartments in several areas, including Moratuwa, Kottawa, Dematagoda, Maharagama and Peliyagoda.

The project will be carried out in three phases, with bids already called from eight nominated Chinese contractors.  M/S China Railway 25th Bureau Group Co. Ltd has been selected to build 575 units in Moratuwa and 108 units in Kottawa. M/S China Harbor Engineering Company Ltd will construct 586 units in Dematagoda and 112 units in Maharagama, while M/S Shanxi Construction Investment Group Co. Ltd will build 615 units in Peliyagoda.

The Cabinet of Ministers this week approved the proposal presented by the Rural and Urban Development, Housing and Construction Minister to award the contracts to the companies, based on the recommendations from the Technical Evaluation Committee and Standing Procurement Committee.