Cash-strapped govt. leasing UDA assets to raise Rs. 21 bn

Uncollected taxes, penalties and interests amount to Rs 1,000 bn

By Shamindra Ferdinando

The Urban Development and Housing Ministry yesterday (08) announced plans to raise Rs 21 bn by leasing state lands, over a period of three years, commencing 2024.

A statement issued by the Ministry quoted Urban Development and Housing Minister Prasanna Ranatunga as having said that lands currently held by the Urban Development Authority (UDA) would be leased for long term projects, undertaken jointly by the public and private sectors. Among a range of projects identified were information technology, hotel and health.

Minister Ranatunga, who is also the Chief Government Whip, said that he was confident of raising at least Rs 09 bn this year.

According to the statement, in terms of the proposed plan, over 60 projects have been identified in the Western, Southern, Central, Uva and Sabaragamuwa Provinces and proposals would be called this year in respect of 24 ventures. The lands, earmarked for leasing, are located in Fort, Galle Fort, Warakapola, Avissawella, Thalawathugoda, Kottawa, Ekala, Kandy, Narahenpita, Nawalapitiya, Balangoda, Kolonnawa, Wellawatte and Padukka.

Minister Ranatunga has directed the relevant authorities to expedite the process. Of the identified projects, agreements regarding were been finalized last year.

Sectoral Oversight Committee on National Economic and Physical Plans Chairman Mahindananda Aluthgamage last week told The Island that the government wouldn’t have been in a deepening crisis today if revenue authorities accomplished what was expected of them.

The former minister said that the total amount of uncollected taxes, penalties and interests up to Dec 31, 2023, could be as much as Rs 1,000 bn.

The Urban Development and Housing Ministry said that a special mechanism had been established to provide necessary approvals within 09 and 120 days for projects that were submitted through the Board of Investment (BoI).