Offering Low-cost Housing Solutions Sri Lanka

THE CHALLENGE
In Sri Lanka, 23% of people live below the poverty line

12.5% of the population still live in wattle and daub huts with few facilities

Challenge is to provide well-constructed affordable housing for the very poorest

THE BUSINESS CONTRIBUTION

Major world supplier of cement, aggregates and building-related services
House-for-Life, initiative between Holcim Lanka and microfinance provider, Ceylinco Grameen to address the housing needs of this countrys very poorest Custom-built home has been specially designed as a shop house, providing each family with the premises to run a small business. Holcim Lanka provides initial funds and technical skills while Ceylinco Grameen administers the loans and maintains a close relationship with borrowers.

THE INNOVATION
Loans follow the successful Grameen Bank model (from Bangladesh), with a few local adaptations Ceylinco Grameen provides intensive support for these fledgling businesses

Women learn accounting and other management skills and receive direct assistance with marketing and distribution

When borrowers fail to meet their weekly repayments two weeks running, a follow up home visit helps them deal with any problems

Various model housings were developed , to influence the people and upgrading slum dwellings to decent housing

THE BENEFITS
Accommodates an average family of four or five and also enhances the status of women in the local community Houses are built with cement locally produced and other locally sourced building materials providing new commercial opportunities for local producers and distributors. Holcim aims to broaden its portfolio of housing solutions, strengthen its reputation as a sociallyresponsible company and embrace new business opportunities with lowincome communities.

Houses have modern sanitation and are served by water and electricity

Families have both boosted their income levels and improved their quality of life.

OBSTACLES
Self-build input to home construction envisaged has been much lower than anticipated Model house may not easily be transferable to urban slums, as construction will need to be adapted to specific local lots and this may push costs up significantly

WAY FORWARD
Holcim Lankas House-for-Life project is set to expand tenfold within the next year Once the results of the initial pilot scheme have been assessed, Holcim hopes to partner with patient capital providers to facilitate this expansion of project The partnership is also considering broadening their reach through splitting funding into loans for home construction and loans for home improvements