Concessions offered to MPs to purchase houses during ‘Aragalaya’ crisis withdrawn

A concessionary facility provided for former members of Parliament to purchase housing units after their houses burnt during the ‘Aragalaya’ protest period in 2022 has been withdrawn, keeping with a decision by the Cabinet.

The concessions were initially provided to the Members of Parliament in purchasing houses from “Viyathpura” housing project.

Approval was granted at the cabinet meeting held on 04-07-2022 to provide 101 housing units from the “Viyathpura” housing complex on a rental basis for the period of one year, which was built by the Urban development Authority for the Members of Parliament who had lost their houses due to the unrest that prevailed in the country on 09-05-2022.

However later on, the MPs requested to give them the opportunity to purchase the said houses under the concessionary method.

At the cabinet meeting held on 15-07-2024 a decision was taken to provide one housing unit that is sold to the general public at the minimum value of Rs. 15.5 million and the maximum value of Rs. 22 million houses at the reduced value of Rs. 13.34 million and Rs. 18.21 million, respectively, for the Members of Parliament, and to charge 25% of the purchase price initially, with the balance amount to be charged within 15 years at a 10% interest rate.

Twenty nine Members of Parliament have deposited 25% of the purchasing price on 31-12-2024 to purchase the houses under this concessionary method.

However, as a consequence, the Urban Development Authority has incurred a loss of Rs. 92.126 million due to this payment scheme, the cabinet noted.

Accordingly, the Cabinet of Ministers has approved the proposal presented by the Minister of Urban Development, Construction, and Housing to abolish the concessionary payment method with immediate effect.

The housing units will be made available to the 29 Members of Parliament at the same terms it is offered to the public.