Connect with us

News

Prospective applicants protest over demand to raise ‘personal loans’ to buy government flats

Published

on

At Lunawa Sea View Residencies meant for ‘low and middle income families’

BY SURESH PERERA

Prospective buyers of Sea View Residencies at Lunawa developed by the Urban Settlement Development Authority (USDA) for “low and middle income families” have been left kicking their heels after they were informed last week to raise “personal loans” ranging from Rs. 3.5 to Rs. 4.1 million from any financial institution to procure the units.

This is apart from the 25% down-payment plus another Rs. 240,000 as “related charges”, which have to be paid upfront to acquire the flats, the prices of which range from Rs. 4.56 million to Rs. 5.58 million.

For example, to procure a unit valued at Rs. 4.56 million on the fourth floor of the complex, one has to make a down-payment of Rs. 1.14 million.

The general practice earlier when selling housing units in complexes specifically meant for “low and middle income families” was for the government institution concerned to arrange a feasible credit facility largely through HDFC Bank.

However, prospective buyers of Sea View Residencies complained that they were summoned to ‘Sethsiripaya’ at Battaramulla on Tuesday and told in no uncertain terms that they need to secure a bank loan if they wanted to procure a unit in the newly-built housing complex.

“When we protested that we are low and middle income earners, and no financial institution would offer a credit facility without collateral, an official interjected that there was then no option, but to give up the idea of acquiring a flat”, the distraught buyers said.

Application forms were initially issued to interested buyers on a non-refundable deposit of Rs. 2,000 each. After shortlisting applicants, interviews were called, where they were assured that after the 25% down-payment on the total value of each unit was made, a credit facility would be arranged through the Bank of Ceylon under a monthly repayment plan at 6.25% per annum, they noted.

The availability of a bank facility was also clearly outlined in letters sent to buyers shortlisted as “eligible applicants” to purchase the flats. However, in a sudden turnaround, the promised loan facility has been ditched, they complained.

Some prospective aspirants had in fact approached banks for some degree of relief, but were specifically told that they should either surrender the deed of the flat or some other form of collateral to secure a ‘personal loan’.

“If we had millions of rupees the USDA is now demanding for the units, we could have purchased a small house in the area without waiting for more than a year until the housing complex was completed”, they reasoned.

Whereas the highest priced unit in the complex costs Rs. 5.58 million, there’s a small house put up for sale for Rs. 5.5 million close to Moratuwa town, another shortlisted applicant said. “If I had ready cash, I would prefer to buy an individual house”.

“We were asked to make the 25% down-payment as early as possible, but in case the balance is not settled within the time-frame, refunds will be subject to an unspecified penalty”, he further said.

It appears that the government has built the Sea View Residencies for the wealthy or for those who pump funds, hold on for some time and resell at a considerable margin, he opined. “The deserving has been elbowed out”.

USDA Director-General, Major General (Retd.) Udaya Nanayakkara assured that he was aware of the issue and discussions are ongoing with banks to evolve a solution.

“We wanted to recover the construction cost of the housing complex as the land value has not been calculated into the price”, he told The Sunday Island.

“We were looking at recouping the investment upfront without opting for a time-consuming repayment plan”, he explained.

Another official, who asked not to be identified, admitted that 90% of the shortlisted applicants are now unable to procure units without a workable repayment scheme.

“We were aware that prospective buyers would be left in the lurch sans a bank facility as low and middle income earners don’t have access to millions of rupees in liquid cash. However, we had to adhere to UDA (Urban Development Authority) guidelines”, he asserted.

He said that with the growing displeasure over preference to “people who can afford” rather than “those who deserve” has resulted in looking at the process afresh and the possibility of arranging a bank facility is on the cards.

The President, and the Prime Minister, as Housing Minister, should be made aware of obstacles placed by an officialdom insensitive to the average man’s housing needs, he noted.

The applicants were shortlisted on the basis of a monthly household income of Rs. 75,000. Those who earned more than this were rejected as the flats are meant for low and middle income families, he added.

“At the end of the day, the displeasure generated will reflect on the government”, he added.

A UDA official said the complex was developed by the USDA and therefore “it’s their baby”.

“We had nothing to do with it”.



Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Sangha reform drives stymied from within: CBK

Published

on

Chandrika

Former President Chandrika Bandaranaike Kumaratunga has called for a comprehensive reform programme within Sri Lanka’s Buddhist clergy, warning that repeated efforts to strengthen the Sasana have in the past been derailed by opposition from within sections of the Sangha itself.

In a statement addressed to the Mahanayake Theras of the three Buddhist chapters, Kumaratunga stressed that the long-term preservation of Buddhism depends on safeguarding both the Dhamma and Vinaya, or disciplinary code, and urged urgent internal reform to address what she described as deep-rooted structural weaknesses.

She noted that Buddhist history has consistently demonstrated that periods of institutional crisis were addressed through reform processes, citing precedents from the First Buddhist Council to reforms during the Kandyan era under Welivita Sri Saranankara Thera.

Referring to post-independence efforts, Kumaratunga said initiatives taken during the 1956 Bandaranaike administration to strengthen Buddhism were left incomplete following the assassination of former Prime Minister S.W.R.D. Bandaranaike.

She further stated that during her own presidency, plans to convene a Buddhist Council under the guidance of the late Madihe Pannasiha Mahanayake Thera had received government backing but were ultimately abandoned due to resistance from certain sections within the clergy.

The former President alleged that, on both occasions, vested interests benefiting from existing weaknesses within the Buddhist establishment had worked to obstruct meaningful reform efforts.

Warning that Buddhism in Sri Lanka is currently facing serious challenges, she called for a broad internal dialogue within the Sangha to identify root causes and implement both short- and long-term corrective measures.

Kumaratunga urged the Mahanayake Theras to take the lead in convening a Dharma Sanghayana, or Buddhist Council, and said she was prepared to work with senior lay Buddhist leaders to support such an initiative.

Continue Reading

News

Court orders arrest of Basil

Published

on

The Colombo Fort Magistrate’s Court on Friday ordered the arrest of former Minister Basil Rajapaksa, Tourism Promotion Bureau Chairman Bhashwara Gunaratne, Managing Director Rumi Jauffer and several others over the alleged misuse of Rs. 7.8 million belonging to the Tourism Promotion Authority during the 2014 Uva Provincial Council election campaign.

Magistrate Pasan Amarasena directed the Criminal Investigation Department (CID) to arrest and produce the suspects before court, after it was informed that they would be named under the Public Property Act on the advice of the Attorney General.

The CID told court that attempts to take the suspects into custody from their residences had been unsuccessful as they were not present.

The Magistrate also imposed an overseas travel ban on the suspects and ordered that the Controller of Immigration and Emigration be notified.

Investigations have reportedly revealed that the funds were used to print 12,000 T-shirts bearing an image of former President Mahinda Rajapaksa on one side and the name of a political party on the other.

According to the CID, the T-shirts were later distributed at a political event held in the Monaragala District.

Continue Reading

News

Dayasiri raises alarm over ‘coal cartel’, flags national security risks

Published

on

Dayasiri

Kurunegala District SJB MP Dayasiri Jayasekera last week lodged a detailed submission before the Special Presidential Commission probing coal imports, alleging that Sri Lanka’s power sector is being exposed to serious national security risks due to irregularities, collusion and sanctions-related vulnerabilities in the coal procurement process for the Norochcholai Lakvijaya Power Plant.

In a dossier submitted last week, the MP called for a comprehensive investigation into the ongoing 2026/2027 tender for 2.28 million metric tonnes of coal, warning that the awarding of contracts to certain bidders could jeopardise the stability of the country’s electricity supply and trigger risks reminiscent of the 2022 power crisis.

The Lakvijaya Power Plant, Sri Lanka’s largest coal-fired power station, contributes nearly 40 percent of the national electricity generation.

Jayasekera alleged that the procurement process has been compromised by what he described as a “network of disreputable international commodity traders” and urged the Commission to examine patterns of alleged corruption, collusion and sanctions circumvention linked to coal supply chains.

Among the companies flagged in his submission was Potencia LLC-FZ, which he claimed is involved in ongoing legal proceedings against the Lanka Coal Company (LCC) while simultaneously participating in the current tender process. The MP questioned the propriety of such participation and further warned that the company’s alleged links to Russian supply networks could expose Sri Lanka to secondary sanctions risks, potentially affecting letters of credit, shipping arrangements and marine insurance coverage.

Jayasekera also called for the immediate exclusion of Taranjot Resources from the tender, citing its reported suspension by India’s state-owned NTPC Limited since March 2024. He further alleged that the company has a track record of supplying coal with sub-standard calorific value in previous shipments, which he said had contributed to operational disruptions in power generation.

Raising further concerns over possible bid rigging, the MP pointed to what he described as corporate interlinkages between Mohit Minerals and Taranjot Resources through a common associated entity, Trona Minerals. According to his submission, shared directorships and corporate overlaps suggested coordinated participation in the tender process, which he claimed could amount to a breach of national procurement guidelines.

The dossier also referred to several other international suppliers, raising concerns over their past records. These included allegations relating to shipping practices, arbitration disputes, quality certification issues and exposure to sanctioned supply chains. The MP cited instances involving alleged “dark shipping” practices, quality disputes in past deliveries, and contractual disputes that had led to arbitration proceedings in international forums.

Jayasekera also urged the Commission to revisit the Trident Chemphar coal procurement controversy of 2025/2026, alleging that a contract had been signed prior to obtaining Attorney General clearance. He claimed the episode had resulted in significant shortfalls in power generation, estimating a loss of around 250 gigawatt-hours.

Describing the matter as one of “national security rather than a commercial dispute”, the MP warned that any compromise in coal procurement could destabilise the country’s power supply, particularly at a time when Sri Lanka remains under an IMF-supported economic reform programme.

He urged the Commission to take a firm stance on procurement integrity and ensure that only credible and compliant suppliers are considered in future tenders.

The Commission is expected to examine the submissions as part of its wider inquiry into coal procurement practices dating back to 2009.

Continue Reading

Trending