Confusion over planned take-over of unused estate lands

Sri Lankan plantation companies are studying details of unused estate lands earmarked by the government to distribute among 12,500 selected youth to start cultivations afresh, officials said.

The government released these details on May 9 to plantation companies individually and their concerns on the acquisition process would be made known to the authorities collectively, Planters Association ( PA) Secretary General Malin Goonetileke said. The Business Times on May 5 exclusively revealed details of the plan in which over 25,000 acres would be distributed among 12,500 youth while allocating Rs. 100 million from the Treasury to provide loans for them.

The original plan to regain 37,000 acres from the plantations for this project has been reduced to 25,000 acres.

However the PA is yet to receive the details of the exact extent of unused land earmarked to take back from plantation companies, he said adding that they will have to take a collective decision on the implementation process of the plan.

18 out of 23 plantation companies are listed on the Colombo bourse and the interest of shareholders of these companies will also have to be looked into before taking any decision on this matter, plantation sector officials said.

The other issue will be the interaction between the new farmer- nominees and the estate resident population, they added.

Officials dispute state assertions of unused land saying there is hardly any such land in high grown estates as most of it has been diversified into other cultivations including palm oil and spices.

As many as 12 of the listed companies have diversified and gone into the production of spices, they disclosed. Another problem that arises under the new plan is administration of estates with the entry of new group of youths with political backing. But Finance Ministry officials accuse some companies of sub- leasing their lands to others for a larger lease fee than what they were paying the Treasury.