Sri Lankan government decides to slash lease rentals on state land released for commercial agriculture
The government of Sri Lanka has reportedly decided to slash the lease rentals charged on state lands released for commercial agriculture.
The government’s decision was announced to the media by Lands Minister Gayantha Karunathilake.
The Minister has explained that despite concessions being granted for state lands released for housing and industry, land released for commercial agriculture is charged a higher rate.
However, the Cabinet of Ministers has now approved the removal of the fee that is equal to three years lease rentals charged upfront at present.
Also, instead of increasing the lease rental by 50 percent every five years, only a 20 percent increase will be made.
According to the Cabinet decision, if the lease is renewed, its value will be assessed as an increase of 20 percent from the previous lease.
The decision by the Sri Lankan government to cut the lease rentals on state lands released for commercial agriculture will open up many opportunities in the agriculture sector. Investors both local and foreign could look at state lands to start up agriculture projects in Sri Lanka.
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