Cabinet nod to remove concessions granted to MPs to purchase houses from “Viyathpura”

The Cabinet of Ministers has approved the proposal to abolish the concessionary payment scheme granted for Members of Parliament to purchase houses from the “Viyathpura” housing complex.

Approval was granted by the Cabinet in July 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 MPs who lost their houses due to the unrest that prevailed in the country on May 09, 2022. 

Subsequently, MPs sought to purchase the houses under a concessionary payment method. 

Accordingly, approval was granted at the Cabinet meeting held on July 15, 2024 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 a value of Rs. 13.34 million and Rs. 18.21 million, respectively, for MPs, and to charge 25% of the purchase price initially, with the balance amount to be charged within 15 years at a 10% interest rate. 

Further, 29 MPs had deposited 25% of the purchasing price on December 31, 2024 to purchase the houses under the concessionary method.
 
However, as a consequence, the Urban Development Authority incurred a loss of Rs. 92.126 million due to the payment scheme, according to Cabinet Spokesman Dr. Nalinda Jayatissa. 

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