"Emerging challenges of post conflict recovery in the North and East of Sri Lanka, particularly in the areas of housing, water supply and sanitation, far surpass those of the Tsunami, the devastating natural calamity of such magnitude as had never been experienced in the 2500 years of Sri Lankan Civilization. With over 800,000 displaced persons - recovery of housing is the primary need of the affected and also critical first step in the need to "rebuild their lives". The government with His Excellency the President personally providing leadership is currently engaged in developing a comprehensive housing recovery program for those affected by the decades’ old war of North and East."

This was said by the Minister of Urban Development, Mr. Rohana Dissanayake at the 22nd Session of Governing Council of United Nations Human Settlement Programme (UN Habitat) which was held on 30th March to 03rd April 2009 at the UN Habitat Headquarters, Nairobi, Kenya.

At this conference Minister of Urban Development Mr. Rohana Dissanayke said "We are thankful to UN-Habitat for the initiative and the assistance in establishing the Slum Improvement Fund which is at its initial stage of involvement in providing credit to the urban poor and the marginalized to improve their living conditions and we assure continuing our cooperation and support to the programme. However, it has to be highlighted that the Banking and other financial institutions contribute with unfair demands of collateral and other conditions, in spite of the matter canvassed over a long period of time at numerous forums worldwide.

The global financial meltdown needless to say will further aggravate the enormous challenges faced by the poor. With the countries of affluence concentrating their attention exclusively on containing the effects of the crisis on their economies, the misery of the poorest will only further aggravate and Millennium. Goal 7 that calls for the significant improvement in the lives of slum dwellers by 2020 will remain an unattained dream unless the world community intervenes now.

Whilst being built upon Sri Lanka’s past experiences in promoting housing for the poor with priority and vigor, our recent programmes are mostly designed for implementation in local and community based partnerships community based where as others in public private partnerships include components to serve the housing needs of the poorer communities as well as those of the middle income in accordance with the priority commitment to the eradication of urban poverty and the promotion of urban good governance.