GOVT. MOVES TO ARREST INCREASE OF LAND PRICES
The government will introduce a new land valuation system to State lands under the Mahaweli Authority to arrest the sharp increase of land value and only 20% will be added to the existing lease amount at the time of revision once in every five years as opposed to 50% addition under the current valuation system.
A memo submitted to the Cabinet by President Maithripala Sirisena on Tuesday also requires the computation of the lease amount of the second period of the lease to be done by adding only 20% to the amount charged in the last year of the first 30 years instead of 50%.
In terms of the provisions of State Land Ordinance No.08 of 1947, Mahaweli Ordinance No 08 of 1947, the Authority of Sri Lanka has distributed lands within the Mahaweli systems on long term lease basis for a period of 30 years for agricultural and residential purposes as well as for commercial purposes. Agriculture, in these areas, has reached a very high standard and, based on it, several business enterprises that are important to the community as well as the economy have been established.
The annual lease payment for these lands is calculated on the basis of market value obtained from the Land Commissioner General’s Department, the Mahaweli Authority of Sri Lanka and the Chief Valuer. The market value of lands is determined taking, into
Mahaweli Authority has distributed lands within the Mahaweli systems on long term lease basis for a period of 30 years for agricultural and residential purposes
consideration, improvements made to it and other infrastructure facilities available, and the annual lease amount is equivalent to 4%.
The State Land Ordinance states that the annual lease amount of the lands granted for commercial purposes should be revised in every five years at a rate not exceeding 50%. Accordingly, lease amounts have been revised by varying percentages up to 50% depending on circumstances.
However, the letter of the Secretary to the President of 21.07.1995 titled has advised that all ministries, Departments, Corporations and Statutory bodies should ensure that the revision of lease payment once in every five years should not be less than 50%.
Small and Medium scale entrepreneurs of Mahaweli areas have constantly complained against this development indicating that they find it difficult to carry on their businesses as the amounts charged for leased State lands or on commercial purposes are exorbitant. They, therefore, have requested concessionary rates for their leased lands.