Sri Lanka, March 22 -- Canada plans to reduce its temporary residents and set a cap on temporary immigration for the first time ever, Immigration Minister Marc Miller said on Thursday, the latest government effort to address a housing shortage and stretched essential services.

In recent years Canada has seen a sharp rise in international students, foreign workers and other temporary residents who come to the country on time-limited visas as Prime Minister Justin Trudeau's government relied on immigration to drive economic growth and plug labor gaps.

But the Liberal government has also come under political pressure for its immigration policies, with critics arguing they have exacerbated a housing crunch. Some services provided by the pro...