An Indian government-backed initiative to construct 600 model houses across Sri Lanka has reached 98.5 percent completion, with two new villages handed over to residents this week in Kegalle and Kalutara districts.

Two newly constructed villages in Kegalle and Kalutara were officially handed over to beneficiaries on Wednesday, marking significant progress in India's grant-funded housing initiative for Sri Lanka. The handover ceremony saw the participation of Indian High Commissioner Santosh Jha alongside Sri Lankan ministers responsible for housing, environment, and health. A total of 48 low-income families received permanent homes through this phase, distributed across the two villages named 'Nanda Gama' and 'Jana Aruna Gama'.

The project, established under a memorandum of understanding between India and Sri Lanka signed in October 2017, aims to construct 600 model houses across all 25 districts of the country. Each model village comprises 24 housing units, with families selected as beneficiaries through district-level housing committees. To date, completed and handed over villages are now present in 20 districts including Batticaloa, Jaffna, Kandy, Colombo, Trincomalee, Ratnapura, Ampara, Kurunegala, Kegalle, and Kalutara.

With only five model villages remaining to be completed, officials expect the entire initiative to reach full completion in the near term. The project represents part of India's broader development assistance programme to Sri Lanka, with a stated focus on improving living standards among vulnerable communities through housing construction and social infrastructure development.