Government to Build 31,000 Houses After $4.1 Billion Disaster Losses

President Anura Kumara Dissanayake has announced plans to construct 31,000 new houses following a World Bank assessment that estimated Sri Lanka’s disaster-related losses at USD 4.1 billion.

Speaking on the importance of long-term recovery and stronger planning, the President said the scale of recent natural disasters has highlighted the urgent need for economic resilience. He noted that while Sri Lanka recorded its highest budget surplus since 1977 in 2025—driven by increased tourism earnings and overseas remittances—a strong and stable economy is essential to effectively respond to such crises.

According to the President, around 6,000 houses were completely destroyed, displacing nearly 18,000 people. Many partially damaged homes are currently unsafe for residents, forcing families to remain displaced. A detailed assessment report on the full extent of the damage is still being compiled.

As part of the government’s response, approximately 25,000 houses will be constructed in safe zones to relocate families currently living in landslide-prone areas. These measures aim not only to provide immediate housing solutions but also to reduce future disaster risks.

The President confirmed that the 2026 Budget includes provisions for the construction of 31,000 new houses, underscoring the government’s commitment to supporting affected communities while strengthening national disaster preparedness.