Cabinet nod given to raise capital through debentures to build affordable housing

•  Approval for Rs. 25 b debentures valid for a period of five years to obtain initial capital on proposal made by PM 

Cabinet this week approved a proposal to issue Rs. 25 billion debentures valid for a period of five years to obtain the initial capital required for the implementation of projects to provide affordable housing to middle-class earners in the public and private sector.

The Cabinet also granted approval to settle the debenture using the proceeds from the sale of houses constructed under the project and to provide housing loans from State banks at 25-30-year concessionary loan interest rates to the relevant purchasers. 

The proposal was made by Prime Minister Mahinda Rajapaksa in his capacity as the Minister of Urban Development and Housing. Cabinet approval was granted in May to implement the housing project to provide affordable housing to middle-class earners in the public and private sector.