Controversy over housing compromise

Sri Lanka's government and the country's construction industry have struck a compromise on the controversial plans for the construction of 65,000 houses for war displaced in the Tamil-majority Northern Province.

Sources in Sri Lanka's builders’ consortium, Major Constructors of Sri Lanka (MCSL), told The New Indian Express on Monday, that as per the compromise, Lakshmi Niwas Mittal’s ArcelorMittal will build 65,000 houses in the North as already planned, and the MCSL will build 65,000 houses elsewhere in the island.

“We are happy with the arrangement as there is vast scope for house construction in Lanka which needs 500,000 new units,” said a top functionary at MCSL, the paper reported.

On February 18, the MCSL was invited by the National Planning Department of the Sri Lankan Finance Ministry to submit a proposal for the construction of 65,000 brick and mortar houses in the North. MCSL responded enthusiastically with the relevant details, including a plan for funding from Chinese and other international banks with ADB and Sri Lankan government guarantees.

However, Indian behemoth ArcelorMittal successfully pushed its case to build pre-fabricated houses made of PVC and steel, despite severe criticism from the Northern Province Chief Minister and the Tamil National Alliance over the utter unsuitability of such houses and their high cost.