India-funded housing projects in Sri Lanka

In late July 2026, Sri Lanka inaugurated two India‑funded model villages—Nanda Gama in Kegalle and Jana Aruna Gama in Kalutara—handing over 24 housing units per village to 48 low‑income families. The ceremonies, attended by Indian High Commissioner Santosh Jha and Sri Lankan housing minister Susil Ranasinghe, marked the completion of projects in 18 of the 25 districts targeted under the 2017 India‑Sri Lanka memorandum of understanding, bringing overall progress to about 98.5%.

A few days later, on 2 August, the Indian Housing Project entered its fourth phase in Badulla’s Kannavarela estate, laying foundations for 57 homes funded by an Indian grant. This phase is part of a broader plan to construct 10,000 homes across six provinces and ultimately about 60,000 homes nationwide, with an investment exceeding 18 billion rupees. Earlier phases have already delivered 46,000 homes in the war‑affected north and east and 4,000 homes for plantation‑sector workers.

Both events underscore the expanding bilateral cooperation between India and Sri Lanka, aiming to improve living standards for disadvantaged families and support Sri Lanka’s post‑crisis economic recovery.