ECONOMYNEXT – The prices of land in Sri Lanka will come down significantly due to government programmes such as gifting deeds and long-term leasing of lands to investors, Minister Bandula Gunawardena has said.
“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.
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“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)