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Land a blow
Residents shut out as rich Tamil expats grab Jaffna real estate at high prices
By Nalaka Nonis
Driven by the absence of war or prospects for peace, the demand for land in the Jaffna peninsula is on the rise with prices reaching heights that shut out the average citizen of opportunities to buy land.

But unlike the country's southern coast where land prices have skyrocketed due to demands from foreigners in the past year, the war-battered Jaffna peninsula has been witnessing an increasing demand for land and rising prices largely due to interest shown by Tamil expatriates -- a phenomenon created by the ceasefire agreement that came into effect two years ago.

Sri Lankan Tamil expatriates living abroad sell their properties here to fellow expatriates or buy from them. Transactions also take place through brokers who advertise their services in the Internet.

A ten-perch block known as 'lacham' in the Jaffna town and within a radius of 20 kilometres is sold at more than Rs. one million. During the height of the war, one lacham was sold at Rs. 40,000 in the Thirunalveli area, but immediately after the ceasefire agreement, it shot up to Rs. 100,000. Today, the price has gone up to Rs. 300,000.

In Nallur, a lacham which was sold at Rs. 150,000 about two years ago, is now being sold at Rs. 500,000. A block of 5 lacham with a house in Nallur in Jaffna, which was valued at Rs. 1.8 million in 1995 has gone up to Rs. 5 million.

The Jaffna-Palaly road, Jaffna-Kankesanthurai road, Nallur and Jaffna town are the most hotly sought-after areas because they offer security due to the presence of international agencies and missions of both local and foreign NGOs.

Residents in Kilinochchi say virtually all available land there has been grabbed by expatriate Tamils with little or no new land-for-sale being offered. "The average citizen has been pushed to a situation where he cannot own a block of land in Jaffna or suburbs because of high prices and big players involved," said a government official in Jaffna, where land deals and alienation are governed by Thesavalamai law.

Residents also say that big-time land businessmen are also buying land with the intention of selling them to Tamil expatriates or locals who can meet their prices.

Jaffna Land Registrar N. Sathasiva Iyer told The Sunday Times there had been a sharp rise in land transactions after the signing of the ceasefire agreement which had stirred hopes of a new beginning among the expat community.

The land market experienced a slight drop after the dissolution of parliament in February this year, but it has picked up with the new UPFA government also showing commitment to the ceasefire agreement and the peace process, officials said.

The LTTE, which runs a de-facto administration in large parts of the North, has chosen not to interfere in the market because it stands to gain more income in land-sale taxes when prices are high. The most affected are refugees and people who occupy the land of expat Tamils after they left.

They have formed a group called Association for the Welfare of Affected Persons. The group is protesting against property sales to Tamil expatriates and urging the government to intervene.

"Land and houses in the Jaffna District are being sold by those residing in foreign countries at exorbitant prices. In some cases, people living in the property abandoned by the expatriates who fled the country during height of the war have been uprooted overnight with police influence or through thuggery," V. S. Ramanathan, President of the association said.

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