Improving shelter and livelihood of Urban Poor in with Case Study

H.M.U.Chularathna, Executive Director, SEVANATHA URC 17th December 2014 @ New Delhi, India. 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 ABOUT SRI LANKA Provincial Map of Sri Lanka Total Area 65, 610 sq.km Land Area 62,705 sq.km Inland Water 2,905 sq.km

Climate Low Country Min 24.4 Co- Max 31.7 Co

Hill Country Min 18.3 Co- Max 26.7 Co

Annual Ave: Rainfall 2012 1776mm 2013 1687mm

Highest Elevation 2525m POPULATIONA AND VITAL STATISTICS

Total Population 20,359,434

Population Growth Rate 0.913 %

Population Density 323 P/P sq.km.

Crude Birth Rate 17.5 per 1000 persons

Crude Death Rate 6.0 per 1000 Persons

Average House Hold size 3.9 Persons

Literacy Rate 95.6%

Urban Population 15.1%

Rate of Urbanization 1.36% [2010-2015]

Source: 1. Annual Report , Central Bank of Sri Lanka -2013 2. Sri Lanka Demographic Profile -2014 SOME VITAL STATISTIC OF SRI LANKA

Poverty Head Count Index 15.2% [2006-2007], 8.9%[2009-2010], 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 -2013 2. Sri Lanka Demographic Profile -2014 POPULATION GROWTH PATTERN OF SRI LANKA 1871 - 2011 Census Year Population Growth Rate % 1871 2,400,380 1881 2,759,700 1.4 1891 3,007,800 0.9 1901 3,566,000 1.7 1911 4,106,400 1.4 1921 4,498,600 0.9 1931 5,306,000 1.7 1946 6,657,300 1.5 1953 8,097,900 2.8 1963 10,582,000 2.6 1971 12,689,900 2.2 1981 14,846,800 1.7 1989 16,825,000 1.2 2001 18,797,257 1.2 2011 20,263,723 0.86 URBAN RURAL POPULATION [%] IN SRI LANKA

Year Urban Population Rural Population

1963 17.15 82.85

1971 19.51 80.49

1981 18.62 81.38

1989 17.36 82.64

2001 15.59 84.41

2011 15.13 84.87

2013 15.10 84.90

Source: Census and Statistic Department URBAN RURAL POPULATION [%] BY PROVINCES

Province 2001 2011 Urban Rural Urban Rural Northern Province - - 4.8 95.2 North Central Province 2.2 97.8 1.4 98.6 North Western Province 4.1 95.9 2.6 97.4 Central province 9.5 90.5 7.3 92.7 Eastern Province 4.6 95.4 10.5 89.5 Uva Province 2.1 97.9 1.9 98.1 Sabaragamuwa Province 3.1 96.9 3.1 96.9 Southern Province 7.9 92.1 7.1 92.9 Western Province [CMR] 66.6 33.4 61.3 38.7

Source: Census and Statistic Department 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. 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 – 100,000 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. 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- 500,000 daily commuting population. The City of Colombo also recorded the highest Urban Poor in among other cities. DISTRIBUTION OF URBAN POOR BY MAJOR CITIES

City Total Population Urban Poor [2012 est:] [%] Colombo 752,993 44.0% Mount Lavinia 245,974 9.1% 207,757 7.75% Sri Jayawardhanapura Kotte 135,806 6.0% Negambo 127,754 7.5% Kaduwela 250,668 4.5% 125,351 4.6% 106,783 6.5% 101,159 6.8% 109,175 2.8% HOUSING POLICIES IN POST INDEPENDENCE ERA TO THE PRESENT

Period Major Legislations/ Policies Program Emphasis

. 1st Government sub . Established a Ministry for the committee on Housing in subject of Housing in 1953 1952

. National Housing Act No 34 . Established the National of 1954 Housing Department

1948-1969 . Government Committee on . Rural and Urban Housing Housing Need Assessment in Needs identified and Programs 1961 were introduced to address the housing needs . Land Acquisition Act No 9 . Enable the Govt. to acquire of 1950 lands for Housing and other Public purposes. HOUSING POLICIES IN POST INDEPENDENCE ERA TO THE PRESENT Period Major Legislations/ Policies Program Emphasis

. Enactment of Housing Rent . Establish Rent Control Board Act No.7 of 1972 under the Ministry of Housing . Protection of Tenant by introducing “Rent Ceiling” . State driven Housing . Enactment of Ceiling on . Vesting of excess Houses Housing Property Law No 1 of owned by Private Parties with 1973 the Commissioner of National 1970-1980 Housing . Setup Common Amenities Board for O&M of vested Houses . State Mortgage and . Housing loans for all the Investment Bank Act No 13 income Categories of 1975 . Loans for Agriculture and Industry HOUSING POLICIES IN POST INDEPENDENCE ERA TO THE PRESENT Period Major Legislations/ Policies Program Emphasis

. Enactment of Urban . Implementation of Major Urban Deve. Development Authority Act and Housing Programs No 41 of 1978

. National Housing . Housing Programs for Poor, Middle Development Authority Act income and other groups No 17 of 1979 . Participatory Housing Promoted

. Local Authority Housing Act . Vesting Powers of houses by Local No 63 of 1979 Authorities, Giving ownership rights to tenants . Upgrading of Low income Houses by Improving basic services. [UNICEF supported UBSP in Colombo and other ULAs] HOUSING POLICIES IN POST INDEPENDENCE ERA TO THE PRESENT

Period Major Legislations/ Policies Program Emphasis

1981-1994 National Housing . Hundred Thousand Houses Development Authority Act Program [1978-1984] and the UDA Act . Million Houses Program [1985- 1989] . 1.5 Million Houses Program [1990-1994]

 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. HOUSING POLICIES IN POST INDEPENDENCE ERA TO THE PRESENT Period Major Legislations/ Program Emphasis Policies . Presidential Task . Direct Government Construction of force Report on Houses for Poor and Middle income Urban Development groups and Housing 1994 . Established Real Estate Exchange Limited [REEL] Program to Provide 1995-2005 Urban Poor with Condominium Housing . Housing . Grants Loans and other financial Development assistance for Housing Purposes Finance Corporation . Develop Infrastructure and Act No 60 of 1997 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. HOUSING POLICIES IN POST INDEPENDENCE ERA TO THE PRESENT

Period Major Legislations/ Policies Program Emphasis

2006 to date . Urban Settlement . Housing and Basic Services Development Authority Improvement in underserved Act No 36 of 2008 Communities in Urban areas . “Janasevana” National Housing Program implemented by the Ministry of Housing through NHDA and USDA [1.0 Million Houses during 2010-2015] . 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 HOUSING POLICIES IN POST INDEPENDENCE ERA TO THE PRESENT

Period Major Legislations/ Program Emphasis Policies . National Housing . Quantitative and Qualitative Policy of 2014 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 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] 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 it has decided to improve all the Urban poor Families by providing Decent Houses in high rise schemes. MAJOR CATEGORIES OF USSs IN COLOMBO

Extremely Poor Underserved

Underserved

Upgraded Fully Upgraded URBAN REGENERATION PROGRAM OF UDA

. Already relocated 4,977 families in 10 New Housing schemes by December 2014.

. 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 URBAN REGENERATION PROGRAM OF UDA 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: 2011 -2015 Phase 02: 2015 – 2017

. Coverage: 4,037 Families in 80 Settlements

. 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 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 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 Thank You