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Most post-disaster resettlement projects reflect the ideals of providers (state, donors, and designers) rather than those of the displaced. Thus, most such projects ultimately failed to provide the intended benefits for their residents. This paper presents some key lessons learned from studying the planning and design decisions that housing providers (architects and donors) made when designing resettlement projects in Sri Lanka in the wake of the 2004 Indian Ocean Earthquake and Tsunami. Through interviews, this article studied five housing projects by gathering the providers' design intentions and the residents' feedback on their lived experiences. Findings indicate that residents of these new settlements are dissatisfied as the designs did not align with their cultural and lifestyle aspirations. The providers lacked knowledge of the community design process, the housing needs of this primarily economically disadvantaged population, and how to provide for displaced peoples. The findings of the study indicate four key lessons for sustainable resettlement designs: the need for residents' involvement in the design process, the provision of physical and social support systems, the need for incremental growth of housing, and finally the use of appropriate building technology. These lessons would be useful for future post-disaster reconstructions, especially in the less-affluent communities around the world.