Government to give key urban lands on long-term lease for investment projects
Daily FT: The Cabinet of Ministers has approved the disposal of several State-owned lands on long-term leases, paving the way for new mixed development projects under the Urban Development Authority (UDA).
The move is expected to attract suitable investors through a transparent procurement process based on Government Appraiser valuations and UDA planning regulations.
The approved leases include; 1) three parcels of land in Sella Kataragama measuring 42.03, 20.28, and 20.72 perches respectively, earmarked for urban development disposed on a 50-year lease basis after allocating portions required for ongoing development activities and 2) three-acre, two-rood, 24.59-perch portion of land in Dematagoda (537 Watta), which will be leased out on a 99-year basis.
“All the lands were assigned to the UDA under Section 6(1) of the Government Land Ordinance, and investor selection will follow the proper procurement procedures, as previously stipulated by Cabinet,” Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said during the post-Cabinet briefing.
Responding to questions he noted that these lands are intended to support mixed development projects, aligning with national urban transformation goals and contributing to economic development.
OSL take:
Sri Lanka’s economic expansion and the drive to attract more foreign businesses/investors to the country will receive a further impetus through the Sri Lankan government’s decision provide state lands on long-term leases for foreign investment projects. This move will benefit foreign businesses/investors in addition to Sri Lanka’s strategic positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed with other countries. With Sri Lanka working towards becoming a regional hub, and the Sri Lankan authorities presenting a host of incentive schemes, doing business with Sri Lanka could ensure quick returns on investment (ROIs). Also, given that Sri Lanka’s land values are on a steady growth line, gaining access to state lands for businesses/investments would help foreign businesses/investors to expand operations locally and internationally. All these factors indicate that Sri Lanka is the best destination in the region for foreign businesses/investors on the lookout for business/investment opportunities in the South Asian region.
| Article Code : | VBS/AT/20250418/Z_4 |