Sri Lanka's Urban Development Authority is building 65,000 housing units to relocate people in underserved areas.
The freed land will be used for commercial and mixed development projects.
Rambukwelle said about 35 acres of stateland would be given as 'free grants' to the UDA.
The agency has already awarded contracts to build 9,781 housing unit in 11 locations in Colombo which are expected to completed in the next two years.
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