Urban Development and Housing Minister Prasanna Ranatunga has instructed authorities to resume 24 projects that were put on hold due to the Covid-19 pandemic and economic crisis.
The Urban Development Authority (UDA) is taking steps to restart these projects, which include the replacement of the Welikada prison complex and several other developments.

Among the halted projects, nine were stopped due to organisational issues, with an estimated cost of around Rs.56.53 billion. The UDA has paid contractors approximately Rs.1.18 billion for these projects and still owes around Rs.14 million.

The largest portion of the financial allocation, Rs.55 billion, is designated for the Welikada prison complex replacement project. This project is temporarily suspended due to conceptual uncertainties and financial constraints. 

The UDA is considering a joint venture with the private sector for its implementation.

The remaining halted projects face challenges involving agencies like the Electricity Board, Water Supply and Drainage Board, Railway Department and Road Development Authority. 

Discussions have led to agreements with these agencies, allowing the projects to restart.

Fifteen other projects were temporarily halted due to circulars issued by the Treasury.

The costs for these projects amount to Rs.10,451 million, with the most significant being the Jaffna City Hall construction valued at Rs.3,769 million. Two projects aimed at reducing traffic congestion in Colombo are being jointly developed with the private sector. These projects require Rs.2,438 million.

Additionally, 12 other projects funded by the Treasury are in the process of being reallocated, with Ranatunga coordinating with the Finance Ministry.  However, the resumption of work on these projects hinges on the successful completion of the country’s debt restructuring efforts.