In Sri Lanka, most of the tsunami victims began to resettle in reconstruction site according to the programs directed by the government and other organizations. In the process of recovery, Government of Sri Lanka revised the policy for housing reconstruction because there were some objections against the construction regulation in coastal area. The authors conducted a field survey to grasp housing reconstruction condition in Galle, Matara, and Hambantota as of March 2007. This paper reports on new revised policy and the reconstruction condition and problems in affected areas following the previous survey of November 2005.