The Urban Development Authority (UDA) commenced the preliminary work on the construction of 5,000 flats proposed for middle class families.

A special discussion in this regard was held on the instructions of Urban Development and Housing Minister and Prime Minister Mahinda Rajapaksa and Urban Development, Coast Conversation, Waste Disposal and Community Cleanliness State Minister Nalaka Godahewa on October 12 at the Ministry Auditorium.

Ministry Secretary Sirinimal Perera stated that these new apartment complexes will be constructed for public servants in various fields including doctors, lawyers and teachers as they begin their careers.

These 5,000 flats are expected to be constructed in the Colombo Bloemendhal, Peliyagoda, Orugodawatta, Kottawa, Pannipitiya, Malabe, Kandy, Anuradhapura and other several cities, he said.

It was decided to obtain approval to set the model homes for the two types with an average size of 700 square feet including two rooms and 900 square feet of three rooms.

These 5,000 flats will be completed within three years and handed over to the people. It is also planned to make the relevant payments when purchasing these houses as concessional installments over a period of 30 years at a concessionary interest rate of 6.25%, he added.

The total cost of 5,000 flats is Rs.60 billion and the initial cost of Rs. 25 billion to construct these flats is expected to be obtained through a debenture issue, he said.

The financial allocation for the construction of these 5,000 flats will be provided by the Urban Development Authority and they will carry out full supervision to ensure that all constructions are carried out to the proper standard.

Heads of all construction companies, Urban Development Authority Chairman Harshan de Silva, Urban Development Authority Director General Prasad Ranaweera, acting Chairman of the Urban Development Authority (Property and Land Management) E.A.C. Priyashantha and Ministry officials were present.