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Legislation soon to limit foreigners buying land
By Nalaka Nonis
New policies are to be framed and legislation enacted soon to minimise avenues for foreigners to purchase land in Sri Lanka and to impose a heavy tax on property that has already been purchased.

Minister Piyasena Gamage told The Sunday Times that in the wake of foreigners buying local land at an alarmingly high rate Cabinet had discussed the matter and a decision will be taken soon to introduce new laws to reduce it. He said the purchase of land especially in the southern coastal belt at cheap rates by foreigners could gradually be a threat to the country's sovereignty.

"This is becoming dangerous. If we are not able to put a halt to this quickly, foreigners might make our country their paradise", he said. He said the Government would ensure that foreign investors who buy land here for investment purposes are not affected when the new legislation is introduced. He said the proposed legislation was discussed at the very first Cabinet meeting.

He stated that about 30 to 40 percent of the land in the southern coastal belt is now owned by foreign nationals who initially buy them for residential purposes and later construct hotels. He said foreigners have bought 68 out of about 350 houses in the Galle Fort area.

He blamed the former UNF Government for relaxing the laws enabling foreigners to buy local property without difficulty. Minister Gamage made clear Government plans to introduce new laws when he met representatives of the Hikkaduwa Hoteliers Association on Tuesday.

Association President S. Gunawardena said the minister promised swift action would be taken by the Cabinet to address the issue. He said the local hotel industry in the southern coastal belt has been severely affected after foreigners bought land from locals, specially during the last regime.

He said many foreigners who buy land ostensibly for residential purposes later turn the houses into hotels or rest houses and thereafter draw tourists who would otherwise visit hotels of local people. He added that as a result tourists come to Sri Lanka only with vouchers in their hands and therefore they don't spend much money here.

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