MOFCOM provides RMB 552 million grant for Construction of 1996 Units of Subsidized Housing for Low Income Families Project (Linked to Record ID#69609)

On May 16, 2017, the Chinese Government and the Government of Sri Lanka signed an Economic and Technical Cooperation Agreement (ETCA), which allocated up to $60 million in grant funding for the development of 2,000 low income housing units (as captured via Umbrella Record ID#69609). Then, on April 9, 2018, a Memorandum of Understanding (MoU) for this project was signed.

Sri Lanka's Urban Development Authority (UDA) agreed to allocate lands for the construction of the housing units.

Then, in August 2019, Sri Lanka’s Cabinet of Ministers identified the areas where these housing units would be constructed: the Divisional Secretariat Divisions of Moratuwa, Peliagoda, Thimbirigasyaya and Maharagama and land areas in Peliyagoda and Maharagama.

Then, on January 9, 2022, the Chinese Government and the Government of Sri Lanka signed an exchange of letters for an RMB 552 million grant for the Construction of 1996 Units of Subsidized Housing for Low Income Families Project (as captured via Record ID#95881).

China's Ministry of Commerce (MOFCOM) and Sri Lanka's Urban Development, Construction and Housing Ministry then signed a supplementary agreement for the project on November 4, 2023. The two countries signed the project implementation agreement on November 27, 2023.

The purpose of the project is to construct 1,888 housing units for low-income earners and 108 housing units for artists.

The distribution includes 615 houses in Peliyagoda Dutugemunu Road, 586 houses in Dematagoda Elumaduwa Estate, 575 houses in Moratuwa Battery Estate, 112 houses in Maharagama Ambowatta, and 108 houses in Kottawa Orchard with the latter reserved for artists and journalists.

The Colombo Municipal Council and the Urban Development Authority (UDA) are reportedly engaged in an ongoing land dispute, which has delayed project implementation.

China Railway 25th Bureau Group Company Ltd., Shanxi Construction Investment Group Co., Ltd., and China Harbour Engineering Company Ltd. (CHEC) are the contractors responsible for project implementation. Construction was originally scheduled to start in November 2023. However, the project start date was later pushed backed to March 2024.