Improving shelter and livelihood of Urban Poor in Sri Lanka with Colombo Case Study

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1 Improving shelter and livelihood of Urban Poor in Sri Lanka with Colombo Case Study H.M.U.Chularathna, Executive Director, SEVANATHA URC 17 th December New Delhi, India.

2 CONTENTS Basic facts about Sri Lanka Definition of Urban Areas Sri Lanka s Urban Landscape The Economic Significance of Western Province / Colombo Metropolitan Region Housing Policies In Post Independence Era to the Present Time Urban Poor in City of Colombo Urban Regeneration Program of Urban Development Authority Community Empowerment and Livelihood Support For Urban Poor Lessons Learnt Challenges

3 ABOUT SRI LANKA Total Area Land Area Inland Water 65, 610 sq.km 62,705 sq.km 2,905 sq.km Provincial Map of Sri Lanka Climate Low Country Min 24.4 C o - Max 31.7 C o Hill Country Min 18.3 C o - Max 26.7 C o Annual Ave: Rainfall mm mm Highest Elevation 2525m

4 POPULATIONA AND VITAL STATISTICS Total Population 20,359,434 Population Growth Rate % Population Density Crude Birth Rate Crude Death Rate Average House Hold size 323 P/P sq.km per 1000 persons 6.0 per 1000 Persons 3.9 Persons Literacy Rate 95.6% Urban Population 15.1% Rate of Urbanization 1.36% [ ] Source: 1. Annual Report, Central Bank of Sri Lanka Sri Lanka Demographic Profile -2014

5 SOME VITAL STATISTIC OF SRI LANKA Poverty Head Count Index 15.2% [ ], 8.9%[ ], 6.5% [2012] Labor force Participation Rate 53.60% [2013] Unemployment Rate 4.5% [2013] Employment by Sectors Agriculture 29.7%, Industry 26.2%, Services 44.1% GDP Per Capita [USD] 1,724 [2012], 1,883 [2013], 2,004 [ 2014] Annual Ave. Inflation Rate 6.74% [20111], 7.53% [2012], 6.94% [2013] Source: 1. Annual Report, Central Bank of Sri Lanka Sri Lanka Demographic Profile -2014

6 POPULATION GROWTH PATTERN OF SRI LANKA Census Year Population Growth Rate % ,400, ,759, ,007, ,566, ,106, ,498, ,306, ,657, ,097, ,582, ,689, ,846, ,825, ,797, ,263,

7 URBAN RURAL POPULATION [%] IN SRI LANKA Year Urban Population Rural Population Source: Census and Statistic Department

8 URBAN RURAL POPULATION [%] BY PROVINCES Province Urban Rural Urban Rural Northern Province North Central Province North Western Province Central province Eastern Province Uva Province Sabaragamuwa Province Southern Province Western Province [CMR] Source: Census and Statistic Department

9 DEFINITION OF URBAN AREAS Urban Population refers to people living in urban areas as defined by the National Statistical Office. All the Municipal Council [23] and Urban Council [47] areas are considered Urban. Prior to 1987, the Urban areas included Municipal Councils, Urban Councils and Town Councils. The Town Councils were merged [87 TCs] in to Rural Councils in 1987 which has resulted in misrepresenting the Urban Proportion of the Population in Sri Lanka. Currently, a large number of Population living in Urban Centers located in Rural Council areas which do not included in the Population Census as Urban, resulted in reporting low level of Urban Population.

10 SRI LANKAS URBAN LANDSCAPE The size distribution of Urban Centers is dominated by small and medium size towns. Currently; 10 Cities have population over 100,000 of which 06 are located in WP/CMR 34 Medium size Towns with 20, ,000 Population 94 Small towns with less than 20,000 Population The highest Concentration of Urban Population is recorded in Western Province which is also known as Colombo Metropolitan Region [CMR]. It Consists of 6% of the total land area of the Country and accommodates 28.73% of Sri Lankas total population With regard to urban population, it has the highest concentration of total urban population [61.3%] in 2011.

11 Colombo also recorded the highest Urban Poor in among other cities. THE ECONOMIC SIGNIFICANCE OF WP/ CMR It Accounts for 45% GDP and 73% of Industrial Value added Per Capita income in the WP is USD 3,808 which is 1.6 times National Per capita Income Most of Sri Lankas foreign trade passes through Colombo Port The CMR generates a large portion of the country s Capital, Human Resources Technology and advance services to drive the Economic Growth and Job creation in the WP and rest of the Country Among the seven cities located in the western Province, the Commercial Capital: the city of Colombo is the Predominant Center which has 752,993 Residential Population and 400, ,000 daily commuting population. The City of

12 DISTRIBUTION OF URBAN POOR BY MAJOR CITIES City Total Population [2012 est:] Urban Poor [%] Colombo 752, % Dehiwala Mount Lavinia 245, % Moratuwa 207, % Sri Jayawardhanapura Kotte 135, % Negambo 127, % Kaduwela 250, % Kandy 125, % Kalmunai 106, % Galle 101, % Anuradhapura 109, %

13 HOUSING POLICIES IN POST INDEPENDENCE ERA TO THE PRESENT Period Major Legislations/ Policies Program Emphasis st Government sub committee on Housing in 1952 National Housing Act No 34 of 1954 Government Committee on Housing Need Assessment in 1961 Land Acquisition Act No 9 of 1950 Established a Ministry for the subject of Housing in 1953 Established the National Housing Department Rural and Urban Housing Needs identified and Programs were introduced to address the housing needs Enable the Govt. to acquire lands for Housing and other Public purposes.

14 HOUSING POLICIES IN POST INDEPENDENCE ERA TO THE PRESENT Period Major Legislations/ Policies Program Emphasis Enactment of Housing Rent Act No.7 of 1972 Enactment of Ceiling on Housing Property Law No 1 of 1973 State Mortgage and Investment Bank Act No 13 of 1975 Establish Rent Control Board under the Ministry of Housing Protection of Tenant by introducing Rent Ceiling State driven Housing Vesting of excess Houses owned by Private Parties with the Commissioner of National Housing Setup Common Amenities Board for O&M of vested Houses Housing loans for all the income Categories Loans for Agriculture and Industry

15 HOUSING POLICIES IN POST INDEPENDENCE ERA TO THE PRESENT Period Major Legislations/ Policies Program Emphasis Enactment of Urban Development Authority Act No 41 of 1978 Implementation of Major Urban Deve. and Housing Programs National Housing Development Authority Act No 17 of 1979 Housing Programs for Poor, Middle income and other groups Participatory Housing Promoted Local Authority Housing Act No 63 of 1979 Vesting Powers of houses by Local Authorities, Giving ownership rights to tenants Upgrading of Low income Houses by Improving basic services. [UNICEF supported UBSP in Colombo and other ULAs]

16 HOUSING POLICIES IN POST INDEPENDENCE ERA TO THE PRESENT Period Major Legislations/ Policies Program Emphasis National Housing Development Authority Act and the UDA Act Hundred Thousand Houses Program [ ] Million Houses Program [ ] 1.5 Million Houses Program [ ] These Housing Programs addressed the housing needs of the People in all the sectors; Rural, Plantation, Fisheries and Urban Sector. These are support Based Housing Programs with Participatory Approaches.

17 HOUSING POLICIES IN POST INDEPENDENCE ERA TO THE PRESENT Period Major Legislations/ Policies Presidential Task force Report on Urban Development and Housing 1994 Housing Development Finance Corporation Act No 60 of 1997 Program Emphasis Direct Government Construction of Houses for Poor and Middle income groups Established Real Estate Exchange Limited [REEL] Program to Provide Urban Poor with Condominium Housing Grants Loans and other financial assistance for Housing Purposes Develop Infrastructure and amenities in Housing Scheme No Major Impacts on Total Housing Sector. Only 700 Low income families were relocated in Condominium Housing Under the REEL Program. Other Housing Loans and Support Programs continued.

18 HOUSING POLICIES IN POST INDEPENDENCE ERA TO THE PRESENT Period Major Legislations/ Policies Program Emphasis 2006 to date Urban Settlement Development Authority Act No 36 of 2008 Housing and Basic Services Improvement in underserved Communities in Urban areas Janasevana National Housing Program implemented by the Ministry of Housing through NHDA and USDA [1.0 Million Houses during ] Improvement of Existing Urban Housing Schemes In addition to the Above Programs, The UDA has undertaken a major Relocation Program in 2011 to Provide Low income families with Permanent Houses in G+12 Housing Schemes. Target 70,000 Housing units to relocate all the Urban Poor in City of Colombo by 2020

19 HOUSING POLICIES IN POST INDEPENDENCE ERA TO THE PRESENT Period Major Legislations/ Policies National Housing Policy of 2014 Program Emphasis Quantitative and Qualitative improvement of National Housing Stock by State and Private Sector investment Promote People centered Participatory Housing Approaches Provide adequate financial support Increase the supply of rental houses Promote Eco Friendly, Energy saving and Resilient Housing Technologies Expand Housing Finance Market Promote Research and Development in Housing sector

20 URBAN POOR IN CITY OF COLOMBO Colombo being the Economic Hub of Sri Lanka has attracted a large number of working population to the city, majority of whom live in Urban Poor settlements. A number of City wide Surveys of USSs were conducted in the past 1978 by the Urban Development Authority 1998 by the Ministry of Housing [1050 settlements identified] 2002 by SEVANATHA and Colombo Municipal Council [1614 settlements identified with 77,612 families] 2012 by SEVANATHA and Colombo Municipal Council [1735 Settlements identified with 123,185 families]

21 URBAN POOR IN CITY OF COLOMBO 2012 USSs survey has identified four categories of USSs as follows Fully Upgraded 39.3% Upgraded 54.5% Underserved 5.9% Extremely Poor- 0.3% A large majority of Urban poor were benefitted by the favorable Housing Policies and Programs implemented since 1970s. However, by considering the Vision of the Present Government to Develop Colombo as the Centre of Excellence in South Asia it has decided to improve all the Urban poor Families by providing Decent Houses in high rise schemes.

22 MAJOR CATEGORIES OF USSs IN COLOMBO Extremely Poor Underserved Underserved Upgraded Fully Upgraded

23 URBAN REGENERATION PROGRAM OF UDA Already relocated 4,977 families in 10 New Housing schemes by December Another 25,000 Housing units will be completed within next 03 years 450 sq.ft size housing Unit [02 Bed Rooms,01 Living Room, Kitchen and a Toilet] Cost Subsidy of New Housing Unit Rs. 1.0 Million Actual Cost Rs. 7.0 Million Down Payment Rs. 50,000 and a Deposit of Rs. 50,000 in the O&M fund Balance Payment of Rs. 950,000 to be paid in 25 to 30 years on monthly installments

24 URBAN REGENERATION PROGRAM OF UDA

25 Major Interventions: a. Basic Services Improvement b. Training and CBO strengthening c. Women focused Savings and Credit Program d. Livelihood support e. Improve linkages with a Municipal Council and Government Institution f. Assist obtaining improved tenure rights COMMUNITY EMPOWERMENT AND LIVELIHOOD SUPPORT FOR POOR In addition to the current UDAs Urban Regeneration Project, SEVANATHA and CMC is implementing a Project for Empowering the communities through CBO strengthening and Livelihood support. This Project is Supported by the UKAid through the Reall [Former Homeless International] U.K Project Period Phase 01: Phase 02: Coverage: 4,037 Families in 80 Settlements

26 LESSONS LEARNED During the Past five [05] decades, a number of progressive Acts and Policies in favor of Urban Poor Housing were introduced in Sri Lanka [Enabling Policies] Institutions with specific Responsibilities for improvement of Housing and livelihood of the Urban poor were established and implemented Pro poor housing Programs Private sector and Civil Society Participation in housing and livelihood improvement of the poor was encouraged Financial Support for Housing improvement directly under the Government Programs, through Commercial banks and Micro Credit Programs encouraged Rights of the Poor to live in the cities are guaranteed by upgrading/ regularizing the Urban Poor settlements and compensating if relocation is undertaken

27 CHALLENGES Restoration of the lost Livelihood of the Urban Poor in relocated schemes Re-establishing the Disturbed social linkages of the Poor How to guarantee a steady income of relocated families to Manage the service costs and Family Expenses in the new Locations Addressing the maintenance issues of New housing schemes Addressing the Emerging social issues in the new Housing Schemes [Isolation, Ethnic issues and elderly & differently able persons Changing the attitudes and behavior of the people to accept the new housing and integrate to the new lifestyle

28 Thank You

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