Business Times

T-bills, not cash for acquired lands

By Bandula Sirimanna

A ‘fair’ number of owners of land acquired by the government for road development are now being paid compensation with Treasury bills instead of cash on a directive by the President, Wasantha Karannagoda, Secretary to the Ministry of Highways and Road Development, said.

The compensation process of persons whose lands were taken over by the state for road development is now underway and a sizable amount from the total of Rs.8.5 billion in compensation which remained unpaid for land taken over by the state for road expansion has been paid in Treasury bills, he added. The Ministry of Highways and Road Development has taken speedy measures to settle the accumulated claims, for lands taken over by the government for road development which is vital for the country, Mr. Karannagoda, a former Navy Chief, told the Business Times.

He did not give reasons for not paying the usual cash compensation but Treasury officials said this option has been offered due to a shortage of funds to pay compensation. Around 42,000 families who surrendered their land making way for infrastructure development for the benefit of the country have not been paid their entitled compensation, for several years. Some of them have not received compensation for around 25 years and now are receiving Treasury bills, informed sources said.

The government is acquiring land under Section 38 of the Road Development Act. It stipulates compensation for land owners. The displaced persons have raised social and environmental concerns as well as complaints about delays of paying assessed compenstion. The additional compensation (25% of the compensation amount) that was due to severely affected families who own land and structures is being withheld by the Road Development Authority (RDA).

Rent stipend and other relocation allowances are similarly being withheld, and houses and lands are being grossly undervalued. The RDA has set up several levels of grievance handling mechanisms including mediation boards, to settle problems of affected people, RDA sources said.

Some weeks back, at the launch of the Asian Development Bank (ADB) guide for "Designing and Implementing Redress Mechanisms for Implementors of Transport Projects" in Colombo, Mr Karannagoda, said he has also requested the ADB to consider helping the government rectify the issue of compensation.

Under the ADB project agreement for road development which includes land acquisition, separate funds are allocated for the payment of compensation. So far in 2009, Sri Lanka has spent approximately Rs. 90 billion on road development in 2009, up sharply from Rs. 9.7 billion in 2000. Estimates of spending on road development in 2010 is set at approximately Rs. 100 billion.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
Other Business Times Articles
T-bills, not cash for acquired lands
Mihin Air settles 60% of debt, monthly rev. $2 mln
Stock market learns to cope with price curbs
IMF team assessing Lankan economy
SEC seeks assistance of foreign regulators on ERI
Shangri-La to invest in 5-star hotel in Colombo
Comment - Waiting for budget 2011
Feature - tomorrowFITNESS: What is in store for us
Feature - Endowment envy: Investing to donate?
Feature - GSP+ loss will not be so hard: Fitch Ratings
Etisalat reaches magical figure of 3 mln customers, heads for 4 mln
SLT conducts Sinharaja workshop for Mahajana College, Jaffna
Pensioners: Grateful to be paid in Ceylinco saga
Banks reduce loan provisions to boost results
As WP controls national GDP, call for balanced growth across SL
Thonda commends Nestlé’s continued commitment to local dairy industry
World Bank country director ends term
Sampath aims to reach the top in credit cards
CB rejects accusations that it has no authority to invest EPF funds
Acme seeks Rs 250 mln funds for expansion
ADB Vice President visiting Sri Lanka
Child-resistance bottle cap being introduced by makers of Panadol
Kelaniya University bags gold in MTI start-up venture contest
Sri Lankan chicks going to Nepal
Public dialogue on Knowledge-based Development in Jaffna
CPC owes Rs 18.5 billion in oil hedging dues, to Standard Chartered Bank
Mahindra looking at opening a vehicle assembly plant here
SriLankan Airlines' first Trainee Technicians under European certification
Sri Lanka Telecom makes profits in June 2010 quarter
Business Leaders' classroom exercise for small entrepreneurs
Sri Lanka to reduce e-waste with private sector assistance
Planning buildings with concern for the environment, people’s health
Cargills moves into new headoffice from ‘grand old building’ in Fort
Asgiriya firm becomes sole agents for FENNER
Galpaditenne Tea Factory looking at 4 mln kilos of black tea output
Strike-hit Lanka Walltile threatens to sack contract workers
LOLC to spend nearly US$30mln in refurbishing
Japanese Prof. on lecture tour
Australian and Sri Lankan expatriates visit Sri Lanka
Tourism booms as room strength and hotels grow
Lanka Ashok Leyland partners SMB Leasing to serve North-East
Two new directors at Kotmale Holdings
DFCC Vardhana Bank offers housing, foreign education loans
Tropical Villas sold in larger tourism interest: Jetwing
‘Clean Power’ a new energy saving device for vehicles
Kiwi rugby stars teach safety to Air New Zealand fliers
Sparklink achieves 31 years of service excellence
JKH leads, Carsons No. 4 in the Colombo bourse
DHL launches new direct LCL services from South Asia Pacific to Slovenia
Softlogic slated to buy more into Capital Reach tomorrow
Shares inflated? Invest in the ‘real economy’
Stock market regulator plans to increase liquidity in Colombo bourse
Drop in interest rates not drawing investors to the markets
Some investors urge continuation of price curbs
EPF, Bank of Ceylon, NSB big stakes in Lighthouse Hotels Ltd
SEC's move to discourage quick buck gambler attitude comes under fire by players


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2010 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution