From Hazard to Home: Relocating At-Risk Families to Pearl City

Families living along the Kelani Valley railway reservation faced overlapping vulnerabilities, including daily exposure to trains, recurring floods, poor sanitation, and insecure tenure. Approximately 40%–45% of households experienced annual inundation, while ambient noise levels exceeded 64 dB(A). Informal occupation of railway land created safety hazards and prevented legal recognition of tenure.

The government’s challenge was to clear the corridor to enable railway modernization while ensuring equitable, humane resettlement in line with the Government of Sri Lanka’s National Involuntary Resettlement Policy and ADB’s Safeguard Policy Statement.

The 37-kilometer stretch of the Kelani Valley railway corridor from Maradana to Padukka is one of Sri Lanka’s most encroached transport corridors, where thousands of daily commuters share space with hundreds of households living within a few feet of the track.

Between 2017 and 2025, a series of Cabinet approvals authorized the Government of Sri Lanka to relocate non-titleholder families using domestic resources, complemented by ADB’s financial and technical assistance. The Project Management Unit under the Ministry of Transport coordinated the implementation of resettlement for 120 families with Sri Lanka Railways, Urban Development Authority, National Housing Development Authority, and Urban Settlement Development Authority.

The institutional framework was strengthened through the entitlement matrix and the Entitlement Assessment Committee to verify eligibility and determine fair entitlements for non-titleholders. These mechanisms bridged gaps between national law and ADB’s Safeguards Policy Statement, establishing Pearl City as Sri Lanka’s first fully documented, safeguard-compliant, domestically financed urban resettlement program.

The Pearl City Resettlement Program integrated engineering precision, institutional coordination, and people-centered design into a comprehensive solution. Its implementation followed nine interlinked stages—from socio-economic surveys to condominium management—ensuring transparency and fostering community trust.

Key elements of the program included:

• Inclusive verification: The Entitlement Assessment Committee, a multi-agency body that includes representatives from the Treasury, Ministry of Lands, Valuation Department, Divisional Secretariats, Sri Lanka Railways, Project Management Unit, and the community, validated eligibility through standardized beneficiary dossiers and rigorous field verification.
• Appeals and transparency: The Grievance Redress Committee reviewed unresolved cases and validated occupancy for informal households lacking documentation.
• Design for dignity: The Urban Development Authority designed a 12-level, 120-unit condominium (51–55 square meters per unit) with cross-ventilation, natural lighting, and inward-facing balconies. Five apartments were purpose-built for differently-abled households, featuring ramps, wide doors, and low-mounted switches—an innovation promoting universal accessibility.
• Energy efficiency: A 48 kilowatt-hour rooftop solar system powers elevators and common areas, reducing maintenance costs and emissions.
• Social preparation: The National Housing Development Authority and Urban Settlement Development Authority organized orientation sessions on condominium living and formed a Shadow Condominium Management Corporation^[2] before relocation.
• Fair allocation: Units were assigned through a public raffle, with priority given to households with differently-abled members, ensuring fairness and transparency.
• Technical collaboration and learning: Implementation was strengthened through ADB safeguard workshops and missions, while the PMU also drew lessons from UN-Habitat’s Social Impact Assessment and resettlement practices from the JICA-funded Kelani Bridge Construction Project and the World Bank–supported Metro Colombo Urban Development Project.

Together, the measures transformed a high-risk railway right-of-way into a model of inclusive, climate-resilient, and well-governed urban community development.

The Entitlement Assessment Committee represents a breakthrough in Sri Lanka’s safeguard practice by ensuring equitable eligibility verification for non-titleholders through multi-agency collaboration. The inclusion of five purpose-built accessible housing units and rooftop solar integration showcases innovation in inclusion and sustainability. Together, these features made Pearl City a replicable model for climate-smart, people-centered urban relocation.

One of the five specially designed accessible units with ramps, wider doors, and modified washrooms for differently-abled residents. Photo credit: Upali Mallikarachchi.

A Post-Relocation Household Perception Survey, conducted in October 2025, confirmed measurable improvements:

• 96% of households reported feeling “much safer” post-relocation
• Average satisfaction reached 4.37/5 across gender and vulnerability groups
• Over 90% of residents participate in community activities
• 94% of residents pay their condominium fees on time
• Five accessible apartments enabled independent living for differently-abled residents
• Solar-powered systems lowered maintenance costs
• 85% of households purchased new assets (e.g., beds and mattresses, gas stoves, refrigerators, washing machines, and televisions) within six months, signaling renewed economic confidence

These findings demonstrate that resettlement, when guided by policy coherence and inclusive design, yields tangible benefits in human development, safety, affordability, and community ownership.

The Pearl City Resettlement Program provided valuable insights to guide future urban resettlement initiatives. The following lessons highlight key strategies and practices that contributed to its success:

• Institutionalized cross-agency mechanisms: The Entitlement Assessment Committee model ensured transparency and fairness in verifying non-titleholder eligibility and can be adopted in similar initiatives.
• Early integration of safeguards: Budgeting for social preparation, livelihood support, and gender inclusion during the design stage, enhances sustainability.
• Near-home relocation: as demonstrated by Pearl City’s proximity to the original Kelani Valley line, helps preserve livelihoods and social networks.
• Inclusive design: Accessibility features such as the five universally designed units underscore the importance of dignity and inclusivity in housing design.
• Transparency measures: including public raffles and documented grievance responses, build trust and reduce conflict.
• Post-relocation engagement: exemplified by National Housing Development Authority and Urban Settlement Development Authority mentoring, strengthens condominium management and ensures long-term success, as reflected in a 94% fee recovery rate and effective building maintenance.
• Thorough documentation: such as standardized Entitlement Assessment Committee minutes, Beneficiary Dossiers, and surveys, supports learning, replication, and evaluation for future projects.

^[1] Right-of-way refers to land reserved for railway operations that cannot be lawfully occupied or developed by private individuals.

^[2] The Shadow Condominium Management Corporation was an interim residents’ group organized before the Condominium Management Corporation’s formal registration to prepare residents for collective management responsibilities.

Asian Development Bank. 2014. Lose to Gain: Is Involuntary Resettlement a Development Opportunity? 

ADB. 2009. Safeguard Policy Statement.

Government of Sri Lanka. 2001. National Involuntary Resettlement Policy. Ministry of Lands, Colombo.

M. U. Mallikarachchi et al. 2025. Human-Centered Resettlement and Social Reintegration: Lessons from Sri Lanka’s Pearl City Programme.

UN-Habitat and Project Management Unit. 2019. Resettlement Plan and Socio-Economic / Asset-Inventory Surveys for the Kelani Valley Line (pre-implementation).