Sri Lanka bans land sales to foreigners
Sri Lanka has decided to ban land sales to foreigners after finding that some offshore investors did not use land and property purchases to benefit the nation’s economy, the government spokesman said on Thursday.
The decision comes as the $59 billion economy is struggling to boost foreign direct investment despite gradually stabilizing macroeconomic economic conditions since the end of a three-decade war.
The cabinet has decided to prohibit foreigners from purchasing absolute ownership of state and private lands in Sri Lanka, government spokesman Keheliya Rambukwella told reporters.
“Wealthy foreigners buy lands and do not utilize them fully. They just keep it for their private consumption and don’t contribute to the national economy such as by boosting tourism,” he said.
However, Rambukwella said long-term leases of land will still be allowed, and law will not apply to diplomatic missions.
Foreign direct investment (FDI) last year totaled $1 billion, only half of the government’s target and the same figure as for 2011.
Government officials say the slowdown in advanced economies hit FDI in 2012, while economists say inconsistent economic policies in Sri Lanka have contributed to the below-target result.
On Thursday, Sri Lanka’s Central Bank Governor said in Mumbai that he expects $1.8 billion FDI in 2013.
Sri Lankan President Mahinda Rajapaksa last November proposed banning state land purchases by foreigners. The sale of a prime hotel construction site in Colombo to a Chinese firm had previously been cancelled after the opposition said the price was too low.
Sri Lanka’s parliament passed legislation in November 2011 allowing the government to acquire enterprises or assets it deems underperforming or underutilized. (Reuters)
Latest Headlines in Sri Lanka
- Mahinda Rajapaksa’s security chief Neville and son Yoshitha summoned to CID December 28, 2024
- Salochana Gamage arrested by CIABOC in Rs. 9 million bribery case December 28, 2024
- NMRA suspends 60 pharmacy licenses over regulatory breaches December 28, 2024
- Sri Lanka imports 72,000 metric tonnes of rice to address market scarcity December 28, 2024
- Public oral feedback on Sri Lanka’s electricity tariff amendments starts today December 27, 2024
Sri Lanka has decided to ban land sales to foreigners after finding that some offshore investors did not use land and property purchases to benefit the nation’s economy, the government spokesman said on Thursday.
But the foreigners could enjoy the benefit of taking the said lands on a 99 year lease. Isn’t this as good as selling the lands to foreigners?
banning to sell lands to foreigners is right but the hidden thing is that, in 1975 or 1976 gov gazetted and grabbed the lands from the real land proprietors, most of them were muslims.the gov’s main goal was to dictate and destroy the economies of muslims, most of them were traders and land proprietors.
after grabing the lands , they form a commission called LRC.under the LRC thousands and thousands acres of lands registered.
now these lands are been selling or leasing long terms to foreigners for the purpose of the better economics fr the nation, but it was banned right now because there are several hidden things inside this scenario.
ministers could not find any income if they sell to other nations personally.
the party ministers and mp’s have been making deals with LRC chairman to register these grabbed lands to their pocket in the name of lease for more than 100 yrs but it is very pity to say that now the actual owners are working under some one.
as far as i know most of the lands grabbed by LRC were from NWP.the richest people lived once their in early more than 5 decades .
now the grabbers are the richest people in sl, having hifi vehicles and wifi systems now but if you roll back their late generation, they were even do not have a single perch of land and even a flattened tyre of their own.
this is the true.