Barriers to implementation of public private partnership projects in the affordable housing sector in Sri Lanka

Abstract

Since recognizing the importance of Public-Private Partnerships (PPPs) for housing and infrastructure development in the 1990s, Sri Lanka has seen limited progress, with only two PPP housing projects implemented by 2023. This underscores the urgency to identify and address the barriers hindering effective PPP implementation in the housing sector specially in relation to the affordable housing sector. As the country finalizes the drafting of a comprehensive PPP Act aimed at resolving key challenges, this study investigates the primary obstacles to successful Housing PPP (HPPP) implementation in the Sri Lankan context. A mixed-methods research design was employed, incorporating a literature review, semi- structured interviews, and a questionnaire survey. Data were analyzed using SPSS and Microsoft Excel. The findings confirm the presence of significant barriers affecting PPP implementation in the housing sector. Among 29 identified barriers, five emerged as particularly critical: (1) absence of clear government guidelines and procedures; (2) bureaucratic delays and inefficiencies; (3) lack of local experience with PPPs; (4) escalating land costs; and (5) delays in obtaining necessary permits and approvals.