Govt. to develop 10 major cities

Funds amounting to Rs. 1,300 million have been allocated through the 2026 Budget to the Ministry of Transport, Highways and Urban Development to redevelop identified attractive towns in Sri Lanka as model cities, highlighting their heritage and unique identity, while also promoting them through city branding to increase their popularity among both local and foreign tourists.

Accordingly, it is expected that the project will be implemented based on a study conducted by a suitable consultancy firm, under the concept of City Branding, focusing on enhancing the identity and distinct characteristics of cities such as Anuradhapura, Kataragama, Colombo, and Kandy.

An estimated Rs. 325 million will be required for this initiative in 2026.

Furthermore, the 2026 Budget has also proposed the implementation of a programme to develop 10 cities, with the aim of promoting a more structured, prioritised, and data-driven approach to urban development.

Under this programme, 217 prioritised projects have been identified for implementation in the cities of Jaffna, Matale, Hatton, Batticaloa, Chilaw, Thambuttegama, Vavuniya, Eheliyagoda, Badulla, and Matara.

Accordingly, the Cabinet has approved a proposal submitted by the Minister of Transport, Highways and Urban Development to expedite the implementation of the identified projects under the 10-city development programme for 2026. The proposal includes the utilisation of the remaining Rs. 975 million allocated under the City Branding project, as well as an additional Rs. 500 million allocated for the development of Hatton and Matale. This brings the total funding to Rs. 1,475 million for the programme.