India-funded housing project begins in Sri Lanka's Badulla District

Construction has commenced on 51 new housing units at the Alagolla Estate in Sri Lanka’s Badulla District. The foundation stones were laid on September 29, 2026, as part of the fourth phase of the Indian Housing Project (IHP).

The initiative is a collaborative effort between the Government of India and the Government of Sri Lanka. India is providing Rs. 2.8 million per unit, while the Sri Lankan government is contributing Rs. 400,000 per unit for infrastructure, bringing the total investment to Rs. 3.2 million per house. The project aims to provide safe and dignified housing for the Malaiyaha Tamil community, specifically targeting families who have lived for over 13 years in landslide-prone areas.

The broader IHP Phase IV targets the construction of 10,000 houses across six provinces in Sri Lanka. This follows a larger commitment from India to provide grant assistance exceeding INR 18 billion for approximately 60,000 houses. Other Indian-funded development projects in the region include the construction of a multi-specialty hospital in Dickoya, school upgrades, and smart classroom setups.