Sri Lankans living in post-conflict and tsunami-hit areas will soon have better access to badly-needed housing loans, after the Asian Development Bank (ADB) approved a $ 15 million (nearly Rs. 2 billion) loan to DFCC Vardhana Bank (DVB) to relend exclusively for home purchase or rehabilitation.
“In order to properly rebuild their lives, Sri Lankans affected by conflict or natural disasters need fair and secure access to home loans,” said Philip Erquiaga, Director General of ADB’s Private Sector Operations Department. “A well-functioning mortgage system with greater commercial bank participation will help reach these often underserved borrowers and help close the market gap.”
This is ADB’s first private sector housing finance project in Sri Lanka and is expected to help close the country’s housing shortage, which is estimated at between 350,000 and one million units, with an additional demand for about 100,000 units every year