CABINET APPROVES LOAN SCHEME FOR FIRST-TIME BUYERS

Under the State housing scheme, residents can choose a compatible home from three categories; A (850 square feet), B (1050 square feet) and C (1,250 square feet)

The Cabinet recently approved a proposal to extend the loan scheme for middle-income housing to individuals of both public and private sectors who are first-time buyers. The proposal, submitted by Prime Minister Ranil Wickremesinghe in his capacity as the National Policies and Economic Affairs Minister, sought to consider the general age limits adopted by banks against the age limits that prevailed to apply for this scheme, and also to enable to facilitate more beneficiaries to purchase houses from projects implemented by the private sector.

Additionally, as proposed by the President, the Cabinet decided to lower the eligibility criteria in connection with the monthly income of this programme. The loan scheme which was initially limited to a small section of the population has now been extended to the masses. Earlier, the Cabinet approved a proposal to provide middleincome families, applying for housing loans for the first time, with the opportunity to purchase housing units from schemes constructed by private parties. The scheme was established for middleincome earners to purchase housing units from national housing schemes -- some of which have begun construction -- by the National Housing Development

Authority (NHDA) and the Urban Development

Authority (UDA). The need to extend the loans reach to the private sector was realised due to the extended time needed for the construction of these housing schemes and limited land area available to the State for such projects. Therefore, Cabinet approval was granted to allow the purchase of housing units from the loan scheme to units constructed by the private sector.

The Megapolis and Western Development Ministry began the construction of a middle-income housing scheme in Thalawathugoda earlier this year. Under the project, some 400 housing units are to be constructed on a 2.63-acre plot of land in close proximity to Sri Jayewardenepura Hospital Road. Furthermore, the UDA is to construct office spaces, bus depots and schools in the area at a cost of Rs.7,000 million. Under the State housing scheme, residents can choose a compatible home from three categories; A (850 square feet), B (1050 square feet) and C (1,250 square feet). The scheme will include a vehicle park, gym, swimming pools, cafeteria, supermarkets and other outlets and entertainment facilities.

The Megapolis and Western Development Ministry began the construction of a middleincome housing scheme in Thalawathugoda earlier this year