A revolutionary change in the housing development sector took place in the country following the launch of the 100 thousand, one million and 1.5 million housing programmes mooted in the country when the Late Ranasinghe Premadasa was serving as the Prime Minister.

Also the model village programme mooted with the aim of granting ownership of a land allotment and house to every person, was a significant project. Noteworthy of this project was to draw attention to livelihood development without limiting it only to the granting of houses. This housing programme which came to a halt with the demise of Ranasinghe Premadasa has been revived under the guidance of Minister Sajith Premadasa after a lapse of 21 years.

The construction of 40 model villages commenced as a housing programme with community participation. These houses were built on land given free of charge by the Government and loans provided on concessionary terms.