Conference Proceedings : “JANASEVANA” National ... - UN HABITAT

Key challenges in the housing sector in Sri Lanka
• Shortage of suitable land for residential purposes;
• Inadequacy of guidelines on settlement planning;
• Increase in the cost of building materials;
• Gaps in housing demand and supply;
• High lending rates of banks and low penetration of banks and micro‐finance institutions into low income
groups; and
• Weak credit information.
The current housing stock in Sri Lanka is estimated at 4.3 Mn while new
housing units required by 2020 is estimated at 1 Mn of which 77 % is
permanent and 23% is semi‐permanent. The distribution of permanent and
semi‐permanent structures varies widely from urban to rural areas. It is clear
that the majority of Sri Lanka’s population still live in rural areas or villages.
Trends suggest, however, that this is rapidly changing. The country is
projected to have a mostly urban population by 2020.
It is estimated that Sri Lanka’s population will increase to 22 Mn by 2020. The
Government has planned to develop new metro regions in the country in
order to cater to increasing urban populations as well as promote economic
development. It is envisaged that by 2020, the majority of the Sri Lankan
population will be living in urban areas. The metro cities and regions in the
country are identified as Trincomalee, Anuradhapura, Dambulla,
Polonnaruwa, Colombo, Hambantota, and Batticaloa‐Ampara (Map of Sri
Lanka: Metro cities and Regions in the country).
Strategies to develop the
housing sector
• Improve and expand
settlement planning.
• Improve urban and
regional planning in a
systematic and
sustainable manner.
Metro Cities and Regions in the
country (Source: National Physical
Planning
Department
The GOSL policy direction with regard to housing was presented at the
Symposium. The main elements include improvement and expansion of
housing stock in both rural and urban areas, replacement of semi‐permanent
and temporary shelters by constructing 100,000 houses a year (by 2020) and
the expansion and improvements in rural housing stock in order to reduce
pressure on urban‐rural migrations.
It was further noted that expansion of housing will be undertaken in a
sustainable manner, ensuring a minimal burden on the environment. The
government also promotes a sustainable and rational urbanization for the
country as “cities are engines of growth and magnets for population
migration”. These urban hubs will include the development of Colombo and its
vicinity as a major urban hub and the development of Hambantota, Dambulla
and Trincomalee as metro regions and mega cities. Underserved settlements in
urban areas will be transformed with substantial improvements made to meet
the housing needs and upgrade the living conditions of vulnerable communities
such as plantation workers and fishing communities.
Conference Proceedings – National Housing Symposium 15