The Hon. (Dr.) Susil Ranasinghe - Minister of Housing, Construction and Water Supply

¶ 01 Madam Deputy Chairperson, I am pleased to speak on the work of the Ministry of Housing, Construction and Water Supply. While the core mandates are housing, construction, and water supply, we also handle sanitation and resettlement.

¶ 02 In Budget 2026, about Rs. 70 billion is allocated for development capex. The National Housing Development Authority (NHDA) is the main housing and construction agency. For water supply, the two principal institutions are the National Water Supply and Drainage Board (NWSDB) and the National Community Water Supply Department. In construction, CIDA (Construction Industry Development Authority), the Department of Government Factories, and the State Engineering Corporation represent the state’s role.

¶ 03 On sanitation: the NWSDB handles sewerage and sanitation infrastructure. A significant portion of our construction portfolio and responsibility lies there.

¶ 04 Our Deputy Minister Hon. T. B. Sarath will elaborate on NHDA’s 2025 achievements and 2026 plans, including our practical approach to building a house at Rs. 1 million. The President has allocated Rs. 10.2 billion in this Budget for a grant program via NHDA to assist low-income households with Rs. 1 million per house.

¶ 05 From NHDA’s Housing Fund and associated loan schemes, we expect to support construction of at least 12,000–13,000 houses.

¶ 06 On water: NWSDB currently covers about 52% of households with piped safe drinking water. However, supply reliability and quality issues exist—intermittent hours, turbidity, alternate-day supply in places like Arugam Bay and Pottuvil—key tourism zones that need full-capacity supply. Budget 2026 allocates Rs. 45 billion for NWSDB. In 2025, four major water projects were scheduled to complete; one has already finished and others are in final stages. In 2026, five more major projects are targeted for completion, with three additional major projects commencing in 2026; funds are allocated.

¶ 07 Districts with major works include Jaffna, Kilinochchi, Colombo, Kegalle, Kandy, Anuradhapura, Kalutara, Kurunegala, and Puttalam. Separately, Rs. 9 billion is provided in 2026 to enhance capacity, connections, and water quality in other districts’ schemes. We aim for efficient, high-quality completion within 2026.

¶ 08 For areas NWSDB cannot yet cover, the National Community Water Supply Department implements rural schemes—serving communities of 150, 300, 400 households, managed by village societies. The challenge is water quality and durability of pipes and equipment; we must upgrade these systems. Budget 2026 allocates Rs. 3 billion to the Department. In 2025, we initiated 203 rural schemes benefiting 72,690 households; 53 are to be completed by year-end, reaching roughly 12,000 households this year. Ten village-level water purification projects also advance water quality. The 203 projects will continue into 2026 with allocated funds for quality improvements and upgrades.

¶ 09 Institutionally, the National Community Water Supply Department is not fully structured across divisional and district levels, causing service gaps. We are formalizing the Department, strengthening technical capacity with NWSDB support, and building it to effectively deliver rural water services.

¶ 10 On resettlement: using 2025 allocations, we are advancing resettlement and infrastructure for returnees in the Northern and Eastern Provinces. I personally reviewed progress in Jaffna with District and Divisional Secretaries. Although 16–17 years have passed since the war ended, much remains to uplift livelihoods and facilities. Budgeted Rs. 3,850 million is being increased by the President to Rs. 5,000 million for Northern and Eastern resettlement and infrastructure.

¶ 11 Construction sector: it contributes about 4–5% to GDP and employs over a million across the spectrum—from unskilled labour to highly qualified engineers. From house painting in villages to high-rise developments in urban centers, many actors—individuals, firms, associations—participate. We acknowledge Opposition suggestions to reduce construction costs; we are focusing on standards, durability, quality, employment, and creating an enabling environment for contractors and firms.

¶ 12 Hon. Mano Ganesan asked about a National Housing Policy. We have one and are updating it. Housing involves Government, NGOs, private individuals, and development partners like UN-Habitat, as well as the Governments of India and China. We are engaging them to address bottlenecks—e.g., issues in estate sector housing funded by India—and ensure we capture full benefits. The State alone cannot solve housing, but it must lead; hence increasing the allocation from Rs. 2,500 million (2025) to Rs. 10,200 million.

¶ 13 Under resettlement, we plan to build 2,500 houses in 2026 with Rs. 5,000 million. We will not make empty slogans; we will deliver practically.

¶ 14 On upskilling and labour: many firms now seek workers from Bangladesh and Nepal because local systems don’t supply adequate skilled labour. We are engaging national contractors’ associations and professional bodies to propose programs to raise labour quality and ensure fair wages and job security.

¶ 15 Across all Ministries’ development spending, ensuring construction quality and longevity creates national value. Recent tragedies also underscore the need for standards and oversight. Our Ministry is reviewing and updating eight sectoral policies, not only housing.

¶ 16 Thank you.