The Cabinet of Ministers has approved an urban development programme valued at Rs. 1.475 billion aimed at strengthening city branding initiatives and accelerating priority infrastructure projects across several cities in Sri Lanka.
Announcing the decision at the weekly Cabinet media briefing yesterday (02), Cabinet Spokesman and Health and Mass Media Minister Dr. Nalinda Jayatissa said the programme will be funded through allocations made under the 2026 Budget and is intended to promote a more structured and data-driven approach to urban development.
According to the Minister, Rs. 1.3 billion has been allocated to the Ministry of Transport, Highways and Urban Development to redevelop selected cities in a manner that highlights their unique heritage, cultural identity, and historical significance while enhancing their appeal to both local and foreign tourists.
As part of the initiative, Anuradhapura, Kataragama, Colombo, and Kandy will be developed under a City Brandingconcept based on recommendations from a consultancy study. An allocation of Rs. 325 million has been earmarked for this component in 2026.
Cabinet has also approved the implementation of a wider urban development programme covering 217 priority projects in Jaffna, Matale, Hatton, Batticaloa, Chilaw, Thambuttegama, Vavuniya, Embilipitiya, Badulla, and Matara.
To fast-track these projects, the government will utilize a total allocation of Rs. 1.475 billion, comprising the remaining Rs. 975 million from the City Branding programme and an additional Rs. 500 million previously allocated for urban development activities.
The initiative is expected to improve urban infrastructure, support tourism development, and enhance the economic and cultural value of key cities across the country.
