The then Ministry of Megapolis and Western Development, Urban Development Authority and CHEC Port City Colombo (Pvt) Ltd signed a tripartite agreement in 2016 with a target completion date of June 5, 2025.

However, due to the pandemic, and the project company’s financial constraints and inability to generate sufficient revenue to meet obligations to creditors, the project will not be completed on time, the minister said.

“Therefore the period of implementation of the Colombo Port City Development Project will be extended to June 5, 2027 with the signing of a supplementary agreement between the Ministry of Investment Promotion, Colombo Port City Economic Commission and CHEC Port City Colombo (Pvt) Ltd company,” Gunawardena told reporters on Thursday.

Earlier this month Sri Lanka’s Export Development Board signed an agreement with CHEC Port City Colombo to attract and facilitate export-oriented businesses. (Colombo/May23/2024)

Melco will also invest 125 million dollars in equipping the gaming space, JKH said in a stock exchange filing.

The JKH project, earlier named Cinnamon Life Integrated Resort, will be rebranded as ‘City of Dreams Sri Lanka’.

City of Dreams is a brand of Melco, which operates resorts in Macau, the Philippines and Cypress, JKH said.

A wholly-owned Sri Lanka subsidiary of Melco, has been awarded a 20-year casino license by the government.

In the resort, Melco will operate a 113 high end hotel under its Nuwa brand. A 687 room Cinnamon hotel will also operate. (Colombo/May01/2024)

“This house you get today will become your most valuable property. It is your responsibility to use it safely. Do not mortgage or sell these houses after suffering for the last ten years. I request you to protect these houses like your own life,” Wickremesinghe said.

294 houses at the Randiya Uyana housing complex in Modara were handed over to people from Kajimawatte whose houses were gutted by a fire in 2010.

“The people of Kajimawatte have been living in a place like hell. It is impossible to imagine how they lived there.” (Colombo/Apr10/2024)

State-run Airport and Aviation Services (Sri Lanka) Limited said the Access will be paid by its own funds and concurrence has been obtained from the Japan International Co-operation Agency which was funding the terminal expansion.

Access will work under the direct supervision of consultants to the project, Japan Airport Consultants, Inc and Nippon Koei Co. Ltd.

Access will install 68 remaining piles, construct pile caps and ground beams at the Main Terminal Building (MTB), Pier 2, and Pier 3, as well as the partial completion of an underground utility tunnel in Pier No 2 and 3.

The work will also address the issue of deterioration of steel reinforcements.

The work will reduce the cost and time required for carrying out substructure works of the project when a new contractor is found for the project later, AASL said.

Sri Lanka’s cabinet of ministers last week approved the award of the contract to Access Engineering. (Colombo/Apr08/2024)

“Following the end of conflict, a significant portion of land was requisitioned by the military. To date, the government has released approximately 63,000 acres of both government-owned and privately-owned land,” Wickremesinghe said in Ottagapulam, Jaffna.

Jaffna Commander Major General Chandana Wickramasinghe presented the official land release documents to Wickremesinghe who handed over the documents to Jaffna District Governor Maradalingam Pradeepan.

As per the arrangement, 234 acres of land from five Grama Niladhari Divisions in the Valikamam North were returned to the local public.

“Land ownership is a universal aspiration transcending nationality. It is a fundamental right that everyone should possess,” Wickremesinghe was quoted as saying by his media division.

“Around 2,600 acres of land previously held by the navy have been returned to the use of civilians. Similarly, 2,600 acres of land, encompassing both government and private holdings, formerly under the control of the Air Force, have been returned. Recent developments have seen the return of 101 acres of land to local communities, with an additional 234 acres being granted today.” (Colombo/Mar23/2024)

President Ranil Wickremesinghe’s speech at the event:

“In the era of monarchy, land ownership was vested with the people. However, the enactment of the Waste Lands Act during the British colonial period led to the government assuming ownership of the lands. Consequently, the government came to possess 80% of the country’s land.

While the government transferred land rights to individuals through permits, legal ownership was not conferred. It is my conviction that land seized from the people should be restored to them. Hence, we have resolved to grant free land rights to all holders of land permits.

Land ownership is a universal aspiration transcending nationality. It is a fundamental right that everyone should possess. To this end, we launched the Urumaya program in Dambulla recently, and today, we are extending this initiative to the Jaffna district. While only a select few are benefiting from this program today, I have instructed for its completion by June.

In addition, we have initiated the agriculture modernization program, selecting one Divisional Secretariat in each district for this purpose. In Jaffna, Kopai has been chosen. This initiative aims to modernize agriculture in the province, leading to increased income opportunities for its residents.

Following the end of conflict, a significant portion of land was requisitioned by the military. To date, the government has released approximately 63,000 acres of both government-owned and privately-owned land.

Furthermore, around 2,600 acres of land previously held by the navy have been returned to the use of civilians. Similarly, 2,600 acres of land, encompassing both government and private holdings, formerly under the control of the Air Force, have been returned.

Moreover, recent developments have seen the return of 101 acres of land to local communities, with an additional 234 acres being granted today.

Additionally, there have been instances where lands previously categorized as forest conservation areas by the Forest Conservation Department encroached upon village territories. I have instructed that these matters be resolved in accordance with the 1985 land map.

Previously, the landowners of this region, in collaboration with the security forces, initiated the Palali Smart Agriculture program. We have advised that these lands be reintegrated into modern agriculture practices, recognizing that landowners may require support in this endeavour. Consequently, the Tri forces are collaborating to provide the necessary assistance. Additionally, contributions from reputable companies are being facilitated for sales while, the initiative receives support from the Bill and Melinda Gates Foundation.

Furthermore, specific conditions were stipulated for the allocation of these lands. It is imperative that the best farm in Jaffna be established here, serving as a model farm for the entire nation.

Moreover, a new program similar to initiatives in other parts of the north is being launched in Jaffna. We are addressing post-war challenges and have initiated the Truth and Reconciliation Commission (TRC). However, our efforts are not confined to this. We are committed to providing comprehensive solutions to the issues affecting the people and enhancing their sources of income. Consequently, we are spearheading the establishment of a new economy in this province.

We have devised plans to bolster agriculture from Vavuniya to Jaffna and harness the extensive solar and wind energy resources in the province. We aim to collaborate with India in this endeavour. Furthermore, we seek to stimulate growth in the tourism and fishing industries. Additionally, land has been designated for investment zones. Over the next 5 to 10 years, we are committed to implementing these initiatives to foster a robust economy in the northern region. I extend an invitation to everyone to collectively contribute to the transformation of Northern Sri Lanka into a significant economic hub”.

“Investment proposals had been invited on a competitive basis for a plot of land belonging to the UDA at Kirimandala Mawatha, for a health sector related development project. Accordingly, the Cabinet approved to lease the land on a 50-year long-term lease basis.” (Colombo/Mar12/2024)

The Railways Department owns the largest amount of land in the country.

“I have obtained cabinet approval to have the land and property occupied by squatters for over 10 years assessed, and then sign a lease agreement with them,” Gunawardena was quoted as saying in a statement by the State Information Department.

“All squatters who have been there less than 10 years will be prosecuted. Land grabbing now is useless.” Gunawardena was speaking at the inauguration of the Assistant Commercial Superintendent’s office in Nawalapitiya.

“In future, this office will carry out all commercial activities on the lands owned by the Railways Department from Rambukkana to Matale and Badulla.

“Squatters have to come to this office immediately and file appeals and get the properties assessed; an appeal will be heard on what’s going on. Those who have been there for more than 10 years should verify their identity and pay taxes. (Colombo/March11/2024)

The private party will have to invest on a breakwater, sea wall, deep passenger anchorage, channel and land filling.

Mixed development projects would be set up on the filled land, he said.

The PPP would be on a build operate transfer basis. (Colombo/Mar05/2024)

The rural development program will be implemented in 11 districts; Kandy, Matale, Nuwara Eliya, Ratnapura, Kegalle, Matara, Galle, Kalutara, Badulla, Kurunegala and Ampara.

“The ka-ndu-ka-ra da-sha-ka-ya [Mountain Decade] program is being implemented to improve the public infrastructure of people living in the mountainous areas of this country. The amount allocated in this year’s budget for this program is 10,000 million rupees,” Prasanna Ranatunga said on facebook after participating in a district-level meeting of the project.

The program will focus on 10 development areas: livelihood, market development and promotion of tourism industry, education, drinking water facilities, agriculture and minor irrigation, electricity and renewables, telephone and internet, health and sanitation, environment conservation and disaster management and improvement of housing facilities, Ranatunga said. (Colombo/Feb28/2024)

“The land will be leased to the Navy to operate boating services and to establish lifesaving training activities, and to Asoka college to be used as a playground,” Cabinet spokesman Bandula Gunawardena said on Tuesday.

One block of land is 2 roods and 30.89 perches, and the other is 4 acres, 2 roods and 1.60 perches. (Colombo/Feb27/2024)

The fourth phase entails building 1,300 houses across 45 estates in 10 districts.

“The Tamil community of Indian Origin, who have made significant contributions to the country’s economy, have unfortunately suffered great losses due to the lack of land and housing ownership,” Sri Lanka’s president Ranil Wickremesinghe was quoted at the event by his media division.

“It is imperative that their economic and social rights are upheld. The government is actively initiating this process, starting with negotiations with estate companies to acquire land for the construction of these houses.”

Wickremesinghe, Minister of Water Supply and Estate Infrastructure Development Jeevan Thondaman and Indian High Commissioner Santhosh Jha, virtually unveiled the foundation stone plaque.

“Education levels within estates lag behind those in other regions, necessitating the establishment of equitable educational standards across all schools,” Wickremesinghe said, adding “Efforts must extend to providing opportunities for youth, including access to education and vocational training, particularly geared towards international employment opportunities.”

Wickremesinghe said he hoped “to convene all political representatives and present unified proposals devoid of party divisions within the next month.”

“The security of a home is the first step towards economic and social inclusion of this long marginalised community,” Minister of Water Supply and Estate Infrastructure Development Jeevan Thondaman said. “Our new Saumyabhoomi programme will also ensure that 10 perches of freehold land with clear title is given to every plantation family.

Indian High Commissioner to Sri Lanka Santosh Jha “reiterated India’s commitment to building a deeper and stronger partnership based on shared security, prosperity and enhanced connectivity between the two nations.”

The decision to construct these houses was announced during Prime Minister Narendra Modi’s visit to Hatton, marking the first visit by an Indian Prime Minister to the region. (Colombo/Feb19/2024)

Many Sri Lankans consult astrologers and mystics before building anything new, who advise on which direction a building must not face (ma-ru si-ti-na di-sha-va).

But house owners should also focus on the direction of the sun (hi-ru si-ti-na di-sha-va), officials of the Sri Lanka Sustainable Energy Authority (SLSEA) said.

“When building, constructors should consider a place to install solar panels in a new house,” a statement by the Department of Government Information quoted the officials as saying.

The officials pointed out that although people are concerned about the ‘direction of death’ based on occult science, they are not concerned about the direction of the sun. This has become a problem in the installation of solar panels, they said.

The committee pointed out the need to conduct awareness programs and encourage people to install solar panels.

The use of LED light bulbs to reduce electricity consumption must also be encouraged, they said. SEA officials said that considering the savings from LED bulbs, if the government were to provide LED bulbs free of charge, it could recoup the amount it spends in two months. (Colombo/Feb14/2024)

“The gifting of deeds and the long-term lease of State lands will lead to the price of real estate dropping in the future,” Gunawardena said in response to a question by a journalist at a Cabinet decisions press briefing on Tuesday (10).

“When State lands are released to investors they don’t have to buy land from the real estate market, so the artificial pricing will decrease, and competitive prices will come in.

“Land in Sri Lanka has an artificial price, if you take land in Colombo its more expensive than land prices in developed countries. Our real estate market is a closed market. The gifting of deeds and the release of land for investment purposes opens the market.”

Many people, Gunawardena said, didn’t have ownership to land, “so they couldn’t transfer it, or use it as collateral for a loan. Now, perhaps, these people can sell their land, which means more land coming into the market.”

The Cabinet this week approved several land related proposals by subject ministers. Following on from the Government’s ‘Urumaya’ programme which grants freehold ownership of government lands to settlers, the Cabinet approved a proposal submitted by the Minister of Irrigation to implement the programme for lands under the Sri Lanka Mahaveli Authority as well.

The Cabinet also approved a proposal by the Minister of Wildlife and Forest Resources Conservation to exempt a land area from conservation by the Wildlife Conservation Department, which will see an area of 56.8 hectares of the Madhu Road Sanctuary containing paddy lands and settlements released from the reserve.

Underutilized land owned by government plantation agencies will be leased on long term basis to investors with an export focus, Gunawardena announced.

Related story
Sri Lanka to lease plantation lands to export-related businesses

“Now see how rents have come down,” Gunawardena said. “The rupee will also come down to 280 levels, we hope.”

In response to journalists’ questions about the ramifications of large scale loosening of the Government’s hold on the country’s land, Gunawardena said “We have solemnly promised (di-vu-ra po-ron-du ve-la) that environment protections are in place. We will also not be allowing foreigners to buy land outright, they can only lease.” (Colombo/February13/2024)

“Large underutilized lands are to be given on long-term lease basis to investors with the potential to grow exportable crops, raise livestock farms for export and produce other exportable goods and services,” Minister Bandula Gunawardena said at a press briefing to announce Cabinet decisions on Tuesday (13).

A large amount of land owned by government plantation agencies such as the Janatha Estate Development Board and the Sri Lanka State Plantation Corporation has remained without cultivation or productive use for a long time due to various reasons such as legal problems, institutional conflicts, lack of capital etc, Gunawardena said.

“A plantation reform program has been prepared by the Non-Cabinet Minister of State Plantation Enterprise Reform to effectively utilize the such lands in a way that will bring multiple benefits to the society by involving local entrepreneurs.” (Colombo/Feb13/2024)

“Only about 8 percent of plantation families own their homes, compared to the national average of 86%. We will correct this historical injustice,” Thondaman said after a meeting at Temple Trees with the Secretary to the Prime Minister, which was attended by government officials, regional plantation companies, and civil society representatives, on Friday (9).

“We defined the procedures for identifying suitable lands and beneficiaries, mapping, surveying, preparing deeds, and distributing titles to all plantation families.

“Some of the outcomes from yesterday are as follows.

1. Over 200,000 families will benefit from this programme.
2. ⁠A Secretariat will be set up to coordinate the process.
3. ⁠Rs 4 billion has been allocated by the President for this programme.

“For 200 years, the plantation community, who has contributed so much to our economy, has not enjoyed the simple security of having a place to live,” Thondaman said.

Related stories
Sri Lanka minister calls for solution to 800,000 landless non-workers in plantations

Sri Lanka to improve upcountry plantation workers’ lives amid Indian push

On Monday (5) Sri Lanka’s President Ranil Wickremesinghe distributed an initial 10,000 freehold titles to land to farmers as part of the first phase of the Urumaya program. It is to be rolled out nationwide benefiting an estimated 2 million farming families. The 2024 budget allocated 2 billion rupees for the program’s implementation.

An Indian government project to provide 60,000 houses in the island will also see plantation workers receiving houses. (Colombo/Feb10/2024)

“With arrangements in place to develop it, the corporation is expected to generate revenue of around USD300 million annually,” Chamara Sampath said at a press briefing held on Wednesday (7) at the President’s Media Centre.

“An institution has already been selected to propose a plan for this transformation,” Dassanayake was quoted in a statement by the PMC.

What the institution is and details of the planned development were not given.

The State Minister said his ministry faced challenges from NGOs. “While our phosphate company possesses valuable mineral resources estimated at Rs 24 million, legal challenges from NGOs currently prevent us from profiting from them. Despite this hurdle, we successfully generated income through phosphate sales, enabling us to cover all loans, fulfil salary payments, and contribute Rs 350 million to the Treasury.”

“Similarly, we generated profit from salt mines in Elephant Pass and Mannar, further contributing Rs 100 million to the Treasury. These examples demonstrate the potential of utilizing our nation’s resources for economic benefit.”

“However, challenges such as legal cases against phosphate exports can arise. Giving up on resource utilization due to difficulties would be a disservice to our struggling nation. In these times, maximizing the potential of our resources becomes even more crucial,” Dassanayake said. (Colombo/Feb8/2024)

The rocks are now piled up in the port premises near the administration building and by the Hambantota New Hospital, he said.

“A committee will be appointed to study the possibility of exporting one million metric tons of granite,” Cabinet Spokesperson, Bandula Gunawardena said.

The exports will be carried out under the supervision of Sri Lanka’s Geological Survery and Mines Bureau.

Sri Lanka’s construction industry is also in depressed condition amid an economic crisis and 50,000 and livelihoods of 50,000 workers in the quarry sector have been hit and there is reduced domestic demand according to a cabinet proposal submitted by Environment Minister Keheliya Rambukwelle, he said.

The committee will look into the matter and produce a report for the cabinet. (Colombo/Jan29/2023)

“With 60 million US dollars from the Asian Development Bank, we will repair 600 roads so that they are in usable condition (yanna pulu-wan vi-di-ha-ta),” Gunawardena said.

Sri Lanka’s prevailing inability to repay foreign loans has led to a halt in the construction and renovation of roads and railways.

“There is a flyover constructed with Hungarian aid in Kohuwela which is incomplete,” Gunawardena said. “Hungarian tax-payer money was given to us for two flyovers; one in Gatambe and one in Kohuwela, and both have stopped.

“Despite our discussions with Hungarian officials, until the debt restructuring process is completed, they will not give us a cent.”

Hungary was to provide concessional financial facilities through its Exim Bank for the implementation of infrastructure development projects in the country before Sri Lanka defaulted on its international debt. (Colombo/Jan19/2024)

“Most of them are Chinese investors. Then, we have Japanese, who invest in buildings like Visumpaya and also Koreans,” Prasanna told Economy Next.

The properties are valued at 21 billion rupees, but could result in investments and economic activity valued at multiples of the land.

“You have to multiply the land value by five times,” Prasanna said.

An unsolicited project proposal received by a Korean investor for a housing project alone was about 15 billion rupees.

The UDA has a range of properties including several with historic value.

“Some are bare lands, some are developed properties, like the Gafoor building in Pettah, the Galle Post Office, the Bogambara prison in Kandy, which are meant to be preserved for conservation purposes, but can also serve as valuable tourism properties,” Prasanna said.

Among projects under consideration is the Visumpaya building located in Union Place, a historic official residence which is earmarked for a high-end boutique hotel.

The project is estimated to value at 35 million dollars, for which a Japanese investor has expressed interest.

There had also been interest from investors in other countries, before an economic crisis hit the island.

“Last year we had some discussions with investors from Middle Eastern countries, especially Oman and Dubai,” Prasanna said. “While they initially showed interest, they were discouraged because of this economic crisis.”

Efforts are underway to re-kindle their interest.

The Housing Department of the UDA conducted an exhibition in Dubai last year, with the property portfolio of lands and houses that comes under its ownership.

“We’re planning to have two investment forums in Sri Lanka this year and most probably in India too, and the discussions will continue,” Prasanna said.

“So this year, in partnership with Dubai, Singapore, the Board of Investments and the Tourism Development Authority, we are in the process of planning forums. We are in the discussion stage now,” he said.

Among the projects is a high-rise building and a carpark in Chatham Street for which Expressions of Interest would be called.

The mixed development project is valued at 1,775 million rupees and will be on a 99-year lease.

“I think there may be a good demand for it,” Prasanna said.

From next week, for the Chalmers Granary, interested investors from Singapore are to be presented with different investment model packages.

“We are going for PPP or long term lease,” he said.

Under the initiative to finalize 22 development projects in 2024, is a Small and Medium Scale Industry Development Project at Millewawatta, Padukka with a 30 year lease and base value of 620 million rupees.

The UDA is calling RFPs for a land in Mayura Place, Wellawatta with a 99 year lease period, which is to become a residential development project with the base value of 232 million.

(Colombo/Jan12/2024)

According to Prasanna, the 21 billion rupees in revenue that is to be gained from the investments into these properties is not the final value of the projects.

Related:

Sri Lanka UDA hopes to earn Rs21bn from land sales over three years: report

“The 21 billion is not the value of the projects, that is the land value. You have to multiply the land value by five times,” he said, referring to the real estate additions and renovations the sites and lands are undergoing, and are proposed to undergo in the future.

“We have 27 projects. Some are bare lands, some are developed properties, like the Gafoor building in Pettah, the Galle Post Office, the Bogambara prison in Kandy, which are meant to be preserved for conservation purposes, but can also serve as valuable tourism properties,” Prasanna said speaking to Economy Next.

“Then we also have the land parcels in the main cities, owned by the UDA. So including all these properties, we plan to advertise these lands by this year.”

The current landmark investments include the Kankesanthurai Presidential Palace that is being converted into an information technology university in partnership with the Sri Lanka Institute of Information Technology (SLIIT) and a foreign private investment.

Two waterfront projects along the Beira Lake, along with the Ekala industrial park that is to encompass a 7-land parcel of the UDA and the Perahera Mawatha project in Kollupitiya are also highlights of the finalised UDA development project investments.

“Some go exactly by the PPP model, but for some we only allocated the land on the basis that infrastructure is brought in by the investor,” he said. “Then the investor pays the lease premium and develops the property.”

Prasanna said that the majority of the investors come from South East Asia, predominantly from China, Japan, and South Korea.

Unsolicited investment proposals from South Korea have proven to be lucrative offers for the UDA.

“The investment is nearly 15 billion, they are planning to develop housing projects,” Prasanna said.

Director General Prasad Ranaweera said that the development is vital due to the exchange and currency crisis. “The UDA can’t invest money, and the treasury is not granting money. So then we have to look out for an alternative. We as the UDA have a land bank, which we have to make use of with the private sector,” he said. (Colombo/Jan11/2024)