The government is planning to set up those proposed housing units in 15 identified blocks of state land in the city.
Those units in high rise apartments will be built with all common amenities required for living.
Authorities say, once the shanty dwellers are resettled, it will use those cleared sites to build commercial and mixed development projects.
Sri Lanka is currently in the process of developing the capital under the “City of Colombo Development Plan”.
Post conflict era has seen overseas firms entering the country to set up businesses in the Island including several mixed development projects to come up in the city of Colombo.