In a letter to President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe, R Sampanthan said that the proposed homes pre-fabricated of steel would not suit the tropical climate of the areas.
"The project is offering 65,000 homes when the need is for over 135,000 houses," Sampanthan, the leader of Tamil National Alliance (TNA), said.
"The cost per house provided by the contractor Arcelor-Mittal, an Indian and French outfit is too high. They can be built 2-3 times lower than the current 2.1 million Sri Lankan rupees quoted," he argued.
President Maithripala Sirisena had earlier taken a decision to review the project after concerns were raised over the project.
Meanwhile, Sampanthan came under fire for his comments that there was a good chance of Tamils winning a federal solution in the current Constitution-making process.
"This statement shows that Tamil leaders are still living in the past," Nishantha Sri Warnasinghe of the Sinhala majority nationalist JHU, who is also a Sirisena advisor, told reporters.
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