New regulations for leasehold UDA lands to prevent malpractices
The Government is fast-tracking the promulgation of new regulations for leasehold state land owned by the Urban Development Authority to thwart irregularities and malpractices in such property deals.
Minister of Urban Development and Housing Prasanna Ranatunga said that the several lands leased out to investors for mixed development and condominium projects on long term basis are lying idle or partially developed in Colombo and suburbs as well as outstations.
Among those allotments, there were undervalued lands and given to shadow companies, he disclosed adding that several of them were still under construction or stalled. The UDA is planning to take over abandoned and unfinished buildings or undeveloped leased state lands in the Colombo district introducing new regulations following cabinet and parliamentary approval.
An internal committee is in the process of investigating and assessing the value of such leasehold lands, he divulged.
According to the Auditor General’s Department, several issues have arisen with the UDA’s accounting system, particularly in assessing the value of project lands.
A senior official of the department noted that the land on which the Parliamentary complex located is still under UDA ownership and should be transferred to Parliament. A comprehensive report on all investment lands owned by the UDA is also expected within two weeks.
The Committee on Public Enterprises (CoPE) has uncovered several irregularities in the leasing and management of lands by the Urban Development Authority (UDA), leading to substantial financial losses.
In a recent meeting MP Rohitha Abeygunawardana, CoPE Chairman emphasised the urgent need for improved oversight and compliance within the UDA to ensure transparency and accountability in handling public assets and funds.
One major issue revealed was the leasing of a six-acre land on James Peiris Mawatha, Colombo 02, for Rs. 12 billion for 99 years in 2019 without the required approval from the UDA Board of Directors.
During the drafting of the lease agreement, unauthorised conditions were included which had not been approved by the Board. Disciplinary inquiry is currently underway against the Legal Director responsible for the agreement, and the land development has been stalled.
Additionally, CoPE highlighted a loss of Rs. 330 million by the UDA due to the leasing of 2 acres, 2 roods, and 21.4 perches of land on Fort D.R. Wijewardena Mawatha without formal Board approval. The Committee has requested a detailed report on these incidents within two weeks.
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