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Govt. decision to give two million farming families freehold land deeds will lead to shanty towns – Udaya

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Udaya Gammanpila

By Saman Indrajith

The government’s decision to give two million farming families freehold land deeds will lead to shanty towns popping up in most major towns in Sri Lanka, Pivithuru Hela Urumaya (PHU) leader Udaya Gammanpila said.

Gammanpila added that President Ranil Wickremesinghe’s Urumaya Freehold Deed Programme could probably mark the end of Sri Lankan smallholder farming.

Gammanpila said that farmers only mad money during crop harvesting periods, i.e., at most three times a year.

“A typical farmer borrows money to cover daily expenses. Then he pays these loans with the money he makes during the harvest. Sometimes, he suffers crop losses due to natural disasters, diseases and insects. Sometimes, the farmers commit suicide, but because they do not have freehold titles, the land remains in the family,” he said.

Gammanpila said that since Independence, successive governments have given farmers deeds that are not transferable or sellable. None of these governments have freehold deeds because it was understood that farmers were in a debt trap.

“These days, farmers are facing greater economic challenges than ever. If we give them freehold land, within two years, a significant number of farming families will sell their lands. We will have so many landless people.”

The PHU leader said that most farmers are indebted to loan sharks. This is mainly the fault of banks, which are hesitant to give loans to farmers. Most bank loan schemes are aimed at monthly wage earners.

“The government recently decided that it will not purchase paddy this year. It will, however, give nine billion rupees to small and medium-scale rice millers so that they can buy paddy from farmers. If the government can come up with new schemes to support millers, it should also do something for farmers.”

About 35 percent of the workforce is in the informal sector, and the government and banks must come up with creative schemes to cater to their needs, too, he said.

“Now, the loan sharks can’t ask the farmers to keep their deeds as collateral. With freehold titles, loan sharks can ask farmers to do so, and the moment something goes wrong, these unscrupulous businessmen will take over farmers’ lands. What will the farmers do? Because of their pride, most people will come into the main towns with their families, instead of becoming a labourer. They will set up a shed, and we will soon have colonies of shanties.”

Gammanpila said that such shanty towns can be seen across South Asia. We escaped that because Presidents Ranasinghe Premadasa and Mahinda Rajapaksa pumped money into rural infrastructure. Despite the many shortcomings of the initiatives of these men, most Sri Lankan villages have schools, a road network and basic infrastructure that prevented an exodus of villagers into towns.

“These shanty towns become dens of inequity. There will be diseases and crime. Unplanned urbanization will lead to a plethora of socio-economic problems. Just look at India, Bangladesh, Nepal, Indonesia, etc.”

Gammanpila said the government needs to introduce farming insurance, and state banks should come up with deposit and lending schemes for farmers. Even if we had such schemes, this is the worst time to expose farmland to market mechanisms, he said.

“The price of locally manufactured goods have doubled in the last 18 months. Price of imports has tripled. Most people are selling their assets to make ends meet. At this point, we are giving farmers another item they can sell or pawn. Why are people taking loans now? It’s to bridge the gap between income and expenses. They are not borrowing to invest. There is no way that people can pay these loans. This is the reality.”

The PHU MP said he has no problem introducing a freehold deed scheme once the economy has recovered and bank loans and insurance schemes for farmers have been established.

“Even now, there is nothing preventing farmers from joining hands with others to start collectives, establish businesses or lease the land to another farmer in the same category. There are people who have established farmer’s cooperatives. We also have other state lands that can be released for large-scale commercial agriculture.”



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Chemmani mass graves: Govt to seek international forensic help

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ECONOMYNEXT –International assistance for forensic analysis of the remains unearthed at the Chemmani mass grave will be sought when the need arises, Sri Lanka’s Minister of has Justice said after opposition legislators urged the government to seek help.

“We have spoken to embassies, we have made all the local finances necessary for excavation. But when it comes to DNA analysis, depending on the type and nature we will definitely have to go for internationally recognised places,” Harshana Nanayakkara said in response to a query in Parliament.

Nanayakkara said that request for international expertise is dependant on the direction the courts give on what needs to be done, after which they will decide which agency best suits the proceedings.

The minister also recognised that local expertise is lacking in the forensic department, and the need to train local staff with the help of international experts.

Opposition MPs argued that the present need is direct help in forensics from international entities, rather than the longer term need to train the staff on analysis.

Currently, the investigation is in the excavation and exhumation stage, conducted by archaeologist Raj Somadeva and his team.

The existence of the Chemmani mass grave was first brought to light in 1998, during the trial of the rape and murder of schoolgirl Krishanti Kumaraswamy.

In February 2025, construction workers found remains near the Sinthupathy Cemetery, and following investigations ordered by the Learned Magistrate, the mass grave was discovered.

412 bodies have been discovered, with 409 bodies recovered as of 23 June 2026. According to the Office on Missing Persons, this is the 17th recorded mass grave in Sri Lanka.

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ADB approves $57.4 million package to boost Lanka’s rooftop solar drive

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The Asian Development Bank (ADB) has approved a $57.4 million financing package to help Sri Lanka expand access to affordable clean energy and reduce greenhouse gas emissions through a large-scale rooftop solar aggregation and virtual net metering programme.

The financing comprises a $35 million concessional loan, $16.9 million in grants from the European Union and $5.5 million from the Japan Fund for the Joint Crediting Mechanism. With additional contributions from implementing agencies, the total estimated cost of the project is $80.5 million.

Under the Rooftop Solar Aggregation and Virtual Net Metering Project, two state-owned utilities — Electricity Distribution Lanka (Private) Limited and Lanka Electricity Company (Private) Limited — will introduce a scalable model to collect electricity generated from large rooftop solar installations and allocate the benefits virtually among eligible consumers.

The initiative will allow consumers to access solar power benefits without having to install individual rooftop solar systems.

ADB Country Director for Sri Lanka Shannon Cowlin said the project would broaden access to affordable renewable energy while strengthening the resilience and inclusiveness of the country’s power sector.

She said the initiative would also support grid modernisation and digital transformation, while creating employment opportunities and encouraging greater participation of women and youth in the clean energy sector.

The project is expected to benefit micro, small and medium enterprises and community organisations that face financial or space constraints in installing their own rooftop solar systems. Through a social compensation mechanism, eligible groups will receive reductions in electricity costs under the virtual net metering system.

The programme will support around 25 megawatt-peak of rooftop solar capacity while strengthening distribution networks, improving digital capabilities and preparing the national grid to accommodate higher levels of distributed renewable energy.

A dedicated training facility will also be established under the project to develop green skills, enhance women’s participation in the sector and build technical expertise in advanced low-carbon technologies.

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Bond scam case against Mahendran, Ravi K fixed for July 22

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The Colombo High Court on Friday ordered that proceedings in the case filed against 11 defendants, including former Central Bank Governor Arjuna Mahendran and former Finance Minister Ravi Karunanayake, over alleged irregularities in the Central Bank bond auction be taken up again on July 22.

The case was called before Colombo High Court Judge Manjula Thilakaratne, who informed court that the Trial-at-Bar bench appointed to hear the matter had not been properly constituted.

Accordingly, the judge directed that the case be recalled on July 22 for further proceedings.

The Attorney General has filed indictments under the Public Property Act against 11 accused, including Mahendran, Karunanayake, Perpetual Treasuries Limited and its directors Arjun Aloysius and Geoffrey Aloysius.

The accused have been charged over alleged irregularities connected to a Treasury bond auction conducted by the Central Bank in March 2016.

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