UDA in mega land-lease deals
View(s):The Urban Development Authority (UDA) is continuing to lease out prime land in the Colombo suburbs and main cities including Kandy for mixed and other development projects based on various financial arrangements including annual payments or royalties, official sources revealed.
The aim is to earn a steady stream of income for the UDA.
The Authority plans to borrow US$750 million from overseas to build houses for residents. This will add another 1 per cent of GDP to the public sector if the Treasury approval floating the loan, a senior official said.
The UDA’s land grabbing and leasing is being continued unabated outside the country’s administration and financial regulations and it will bring negative consequences to the national economy, opposition politicians alleged.
No proper tender procedure has been followed in many of these land deals, they said adding that the UDA is planning to sell Rs. 30billion listed debt.
There was no transparency in all these lands deals and other financial transactions of the UDA, they charged.
Several cabinet papers have already been sforwarded to finalise recent land deals of the UDA without following proper procedure, informed sources revealed.
One is to lease out a prime property of 2 acres and 15.5 perches at Sirimavo Bandaranaike Mawatha in Kandy with an estimated value of Rs.670 million to Asiri Hospital Holdings PLC on 50 year lease.
Cabinet approval has been sought to lease out for 99 years, a land inthe extent of 1 Rood and 11.8 perches in Kollupitiya at a lease rental of Rs. 456.5 million to Lee Hedges Investment Ltd, a fully owned subsidiary of Lee Hedges PLC for a mixed development project.
Another cabinet paper has been submitted seeking approval to lease out a land for a mixed development project at Madinnagoda, Rajagiriya in the extent of 1 acre, 1 rood and 27.01 perches with an estimated value of Rs.270 million to Araliya Grand Colombo Hotel PLC.