ECONOMYNEXT – A concessional scheme where houses constructed by Sri Lanka’s Urban Development Authority were sold to members of parliament whose homes were destroyed during public unrest in 2022, has been abolished with immediate effect, minister Nalinda Jayatissa said.
“Due to this concessional scheme, the Urban Development Authority has had to suffer a loss of about Rs. 92.126 million and has not been able to cover the costs incurred,” Jayatissa told reporters.
The 101 housing units in the Viathpura Housing Complex were rented to MPs whose houses were set on fire by mobs during the unrest that broke out on May 9, 2022. Several people were killed, including one MP.
The then cabinet approved a proposal to rent the houses to the MPs for a year.
Later, the MPs asked that they be allowed to buy the properties.
The then Cabinet approved a proposal to sell the houses to the MPs on the basis that they pay 25 percent of the sale price upfront and the rest over 15 years at an interest rate of 10 percent a year.
The units were valued at between 15.5 million rupees and 22 million rupees, but were quoted to the MPs between 13.34 million rupees and 18.21 million rupees.
29 former MPs have paid 25 percent of the sale price installment as of December 31, 2024 to purchase houses under the subsidized scheme.
The present cabinet has approved a proposal to abolish the concessional scheme with immediate effect.
“If the 29 relevant MPs like they can purchase the houses at the market rate,” Jayatissa said.
Jayatissa, who is known for reading out lists of names in parliament, declined to name the 29 MPs.
Houses, vehicles, and properties of at least 74 Sri Lanka Podujana Peramuna (SLPP) ruling politicians were either torched or damaged by anti-government protesters across the country on May 9, 2022, government data showed.
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