News
Govt. decision to give two million farming families freehold land deeds will lead to shanty towns – Udaya
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.”
News
Energy Minister indicted on corruption charges ahead of no-faith motion against him
… first NPPer to face charges under Section 70 of Bribery Act
Colombo High Court has issued summons on Energy Minister Kumara Jayakody to appear in court today (27) to serve indictment in a corruption case filed by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC). Action has been taken under Section 70 of the Bribery Act. The losses suffered by the government have been estimated at Rs. 8,859,708.
National List (NL) MP Jayakody is the first NPP minister or politician at any level to be indicted for corruption. The NPP parliamentary group consists of 159 including 18 NL members.
The summons has been issued by High Court judge Rashantha Godawalage.
Although CIABOC previously in many instances arrested those who had been under investigation and produced them before Magistrate courts, Minister Jayakody has been directly summoned by the Colombo High Court.
The investigation into alleged corruption in procurement during the time Jayakody served the Ceylon Fertilizer Corporation (CFC) started after the change of government in 2015.
According to the CIABOC investigation, the alleged instance of corruption took place in early 2014 towards the tail end of Mahinda Rajapaksa’s second term. At that time Jayakody was CFC’s Procurement Manager, and the CIABOC dragged the investigation until its current leadership under overall speeding up of the cases recently completed the inquiry.
Parliament recently announced that the debate on no-faith motion moved against Minister Jayakody over alleged irregularities in the procurement of substandard coal for the country’s only coal-fired power station at Norochcholai.
SJB MP Mujibur Rahman said that the NPP, having campaigned on an anti-corruption platform during presidential and parliamentary polls in 2025 couldn’t under any circumstances shield minister Jayakody. The indictment of Jayakody over a corruption case that had happened in 2014 and the failure on his part to fulfill obligations as Energy Minister under the current dispensation couldn’t be considered separately, the Colombo District MP said.
The issue at hand is whether the NPP would try to protect Jayakody at the expense of the government, MP Rahman said. Once the NPPer is formally charged in a corruption case the government would find it extremely difficult to keep him in the cabinet, the former UNPer said.
SJB lawmaker S.M. Marrikar recently warned Minister Jayakody that he should be prepared to serve a jail term. The warning was issued at a media briefing that primarily dealt with the alleged irregularities in the procurement of coal and their decision to move a no-faith motion against the minister. Marrikar explained how the crisis coupled with the growing diesel shortage could compel the government to increase electricity tariffs by as much as 18 percent next week. MP Marikkar said that they were eagerly waiting to see who backs Jayakody at the expense of the government during the upcoming vote on the no-faith motion.
There had been a previous case of a sitting minister being charged under the Bribery Act in respect of corruption perpetrated as a government servant. MP Rahman said that they intended to intensify the ongoing campaign against the government on the strength of the unprecedented corruption case and the outcome of the no-faith motion. “Of course, they have the numbers to defeat our no-faith motion. But, in doing so, they end up with egg on their face. That is the reality,” Rahman said, adding that those responsible for waste, corruption and irregularities whichever political parties they represented shouldn’t expect special status.
MP Rahman alleged that the CIABOC granted special status to Minister Jayakody. All those who had been indicted previously were first called to the CIABOC, recorded their statements and then arrested, handcuffed and produced in court. The media was afforded the opportunity to cover their humiliation, MP Rahman said, but in this case the powers that be paved the way for the accused to receive indictments directly from the Colombo High Court.
“Let us see whether the Bar Association of Sri Lanka responds to this development,” MP Rahman said.
By Shamindra Ferdinando
News
Over 1000 complaints of misuse of QR quotas
The Ministry of Digital Economy says it has received more than 1,000 complaints of fraudulent activities involving the misuse of QR-based fuel quota system.
Ministry Secretary Waruna Sri Dhanapala said investigations had been launched in coordination with the Police, noting that over 150 complaints had already been referred for further action, leading to several arrests.
He added, however, that a number of complaints stemmed from instances where individuals had used others’ QR codes due to a lack of awareness.
Police are also examining security camera footage at fuel stations to identify suspects linked to such incidents, the Secretary said.
by Pradeep Prasanna Samarakoon
News
Fuel bowser operators demand 25% hike in haulage charges
The Lanka Petroleum Private Tanker Owners’ Association has called for a 25% increase in fuel transportation charges, citing rising operational costs following recent fuel price hikes.
Addressing a media briefing in Colombo on Wednesday (25), Co-Secretary Shantha Silva said the association has formally notified the government of its proposal, warning that failure to respond favourably could result in trade union action.
Association President A.M.H. Adhikari said that fuel distribution had continued without interruption despite mounting challenges, but recent price increases have placed a significant burden on tanker operators.
“Fuel prices have risen by Rs. 101 within this month alone, creating serious difficulties for those engaged in distribution, particularly in outstation deliveries,” he said.
Adhikari added that the association’s Executive Committee has unanimously decided to seek a 25% increase in transportation charges for long-distance distribution, with effect from the 21st, expressing hope that the government would respond positively to avoid further disruptions.
by Chaminda Silva
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