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Aloe vera export project set to grab 6% of land in Anuradhapura

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… will spell doom for farmers, forests……

By Rathindra Kuruwita

The Cabinet on 30 August 30 approved a proposal for handing over 6% of the total land area in the Anuradhapura District to a private company to grow aloe vera, and this will have a disastrous impact on the environment, climate and human elephant conflict in the North Central and North Western Provinces, Sajeewa Chamikara of the Movement for Land and Agricultural Reform (MONLAR) says.

The Cabinet had approved a paper jointly presented by Minister of Finance Basil Rajapaksa and Minister of Lands S. M. Chandrasena for the handover of 104,066 acres (42,115 hectares) of Anuradhapura land to a private company on a long-term lease of 30 years, Chamikara said.

“Although the project was officially approved only a few weeks ago, the company had been illegally using large swathes of land, used by farmers of Rajanganaya Track 18 village as well as lands that had been under the control of the Forest Department for over three years. These lands have been illegally acquired without the approval of any state institution,” Chamikara said.

The 104,066 acres earmarked for the project include 2,000 acres in Rajanganaya and Nochchiyagama Divisional Secretariat areas, earmarked as a plant nursery, 102,000 acres from several areas of the Anuradhapura District for planting aloe vera and another 66 acres for a factory, a field office and storage units, Chamikara said.

“These lands are to be handed over on a 30-year lease as well as per the provisions of the State Lands Ordinance. The 102,000 acres, to be used as the aloe vera plantation, consists of cultivated lands belonging to families who had been living in these lands for a long time. These are farmers who have been given state land under various schemes. They hold various land titles. The total investment in this project is US $ 783 million. The Cabinet Paper states that US $ 300 million will come into the country as the initial investment,” he said.

Chamikara added that the total land area of Anuradhapura was 717,900 hectares. Out of this, 42, 115 hectares had been allocated to the aloe vera project. The project would make aloe vera the second largest cultivated crop in the district,after paddy, he said.

“However, is it correct to allocate such a vast land area for the cultivation of aloe vera for export? What is the land use pattern of Anuradhapura? It appears that the Cabinet has not considered this. According to the Land Use Policy Planning Department there are 88, 859 hectares of home gardens in the Anuradhapura District, which is 12% of the total land area. There are 6,494 hectares of permanent crops, banana and coconut cultivations in the district too. This is 1% of the total land area. There are 161,752 hectares of paddy land, 23% of the total land area. There are also 87,510 hectares of yearly crops and chena cultivations as well (12% of the land in the district),” he said.

Chamikara said that the total land used for agriculture in Anuradhapura encompassed 344,615 hectares, and out of this, 12% would now be allocated for the aloe vera plantation. Given the significant land use, the impact of the project on the food production of the country should be estimated, he said, adding that at least the revenue generated by exporting aloe vera must be compared to the loss incurred by the reduction in food production. Given that food prices were increasing across the world, the impact the project would have on the food security of the country must not be underestimated, Chamikara said.

“The water sources spread across the district is the foundation of agriculture in Anuradhapura. These water sources, i.e., tanks, rivers, streams, canals, marshes, etc., amounts to 67,630 hectares, which is 10% of the land area in the district. These water sources depend on surrounding areas that act as catchments. There are 175,627 hectares of thick forests in the district, which is 25% the total land area. There are also 116,889 hectares of shrub and open forests, 16% of the total land area. The remaining 13,139 hectares of the district consist of built areas, rocks and sand mounds. When compared to overall forest lands in the district, it is around 14% of such lands. Most forests are linked to the eastern, southeastern, and southern borders of Wilpattu National Park,” he said.

Chamikara said that if forest lands were not used for the project, the government would have to acquire land already used by farmers for the project. It in turn would force a section of farmers to clear forest land as land available for agriculture was reduced because of the project. The clearing of forests will in turn lead to a water scarcity in the district and many farmers will not be able to cultivate during both Yala and Maha seasons. That would start a vicious cycle, he said.

“As per the Cabinet paper, most of the land earmarked for the project belong to farmers settled under various land grant schemes. Most of the chena lands are cultivated only during the Maha season. These lands are left vacant between June and September. This is usually the dry season and these abandoned chena lands become feeding grounds for wild animals including elephants. When such chena lands are used for aloe vera cultivation, the human – elephant conflict of the region will worsen. This would also endanger more farms.

The human – elephant conflict prevails in Puttalam, Kurunegala, Mannar and Polonnaruwa districts, which borders Anuradhapura. Thus, any change for the worse in Anuradhapura would also spill over to these adjoining districts,” he said.

“While aloe vera is a plant with high medicinal value, planting aloe vera as a monocrop on a large scale would lead to many issues”, Chamikara warned, saying that if the company cleared land to plant aloe vera, there will be soil erosion. The eroded soil would find its way into the tanks, rivers, canals, and other water sources in the area. It would lead to diminished carrying capacity in those water sources, which would in turn have a devastating impact on farmers in the area. Moreover, given the severe soil erosion, the farmland would have to be continuously fertilised, and this would lead to other issues in the future.

“On the other hand, during the dry season there is heavy evaporation of water in the soil in an aloe vera plantation. This, in turn, will have an impact on groundwater leading to a serious lack of water for farming and drinking purposes. Aloe vera will be an excellent plant for mixed cropping in home gardens. However, the results will be less than optimal when one tries to plant them en masse as a monocrop,” he said.

Chamikara said, “During recent years, there has been a significant spike in the human – elephant conflict in the dry zone due to the massive expansion of maize and sugar cane plantations in swathes of cleared forest lands.

“The expansion of these large commercial agro enterprises have displaced elephants from their natural grazing areas and have obstructed their ability to move from one forest area to another. Thus, the elephants are compelled to invade human settlements. Small-scale farmers unable to cope with the increasing threat from elephants were selling their lands to big companies.

“Between 1990 and 2000, on average, 150 elephants and 40 humans died per year due to the human – elephant conflict. However, between 2010 and 2018, elephant deaths have increased to 275 and human deaths to 80 per year. The situation became worse in 2019, when 406 elephants and 122 humans died in conflict. In 2020, 307 elephants and 112 humans died. With this project the human – elephant conflict in Anuradhapura District and adjoining areas will further increase,” he said.

All out attempts to contact the company concerned on the telephone number given on its website failed.



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Unions resist tripartite EPF management plan

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… warn of dire consequences

A group of trade unions and civil society groups has requested President Anura Kumara Dissanayake to abandon his government’s controversial plan for the proposed tripartite management of the EPF.

The group has told the President: “We strongly object to the government’s plan to transfer the EPF to a tripartite board—jointly promoted by the Employers’ Federation of Ceylon (EFC), International Monetary Fund (IMF) and the International Labour Organisation (ILO)—and to increase the investments of those funds within private equity and debt markets.

“While the EFC and the government jointly project this plan as a ‘modern governance framework’, it poses a serious threat to the EPF’s financial stability, fiduciary conduct, and returns to workers’ life savings, with severe consequences for broader macroeconomic stability. Rather than replacing the corruption existing in the public sector, this tripartite framework paves the way for a corporate takeover of the EPF. Through this, the fund is exposed to unlawful business practices such as insider trading using internal information of EPF investments, conflicts of interest and corporate bailouts of unstable private companies.

“Sri Lanka’s corporate sector has a tremendously negative track record, which you alluded to during your victorious election campaign in 2024. This was recently unravelled by the multi-billion-dollar illicit capital flight through trade misinvoicing, which your administration is now actively working to curb in the imports sector.

“The recent banking sector fraud exceeds Rs. 13 billion; widespread corporate tax evasion destabilised the fiscal position (Sri Lanka Auditor General’s Department Annual Reports) and consequently inflated the tax burden on the general public. The EFC has found it convenient to remain silent about these crimes, possibly assuming that their silence would preserve their social standing. Considering this inherent corruption within Sri Lanka’s corporate sector and its disregard to the living standards of the general public, there is no realistic basis to integrate corporate interests to actively manage the EPF. The corporate sector of Sri Lanka has not developed sufficiently on technical and ethical grounds to safely entrust the largest retirement savings pool in the country. The EPF is a captive fund that has no mechanism for the owners to divest if the management is corrupt. This further increases the possibility of corporate fraud when the management of the fund is jointly held with the corporate sector.

“Furthermore, during the recent public discussion with trade unions, Deputy Minister of Finance Dr. Anila Jayantha pointed out that the domestic debt restructuring (DDR) would inflict a loss of Rs. 600 billion to the EPF. Our independent calculations—formally submitted as an affidavit to the Supreme Court approved by the Federation of University Teachers’ Associations in 2024—reveal that nominal loss alone is Rs. 634.4 billion. When factoring in foreclosed reinvestment returns, the true loss skyrockets to Rs. 1,711 billion, wiping out 48% of the fund’s projected gross income for the 2023 – 2028 period. Under the pretext of safeguarding the banking system, this colossal robbery preserved high yields on government bonds held by commercial banks and high-net-worth individuals, subsequently reaping them astronomical profits. Now, the exact same plunder is rearing its head again disguised as a tripartite committee.”

“The main arguments supporting our resistance and viable alternatives for optimising EPF management directly under the Central Bank of Sri Lanka (CBSL), are outlined below.

“Objections to the government’s tripartite proposal:

1. The “International best practice and conflict of interest fallacies”

The government holds that tripartite management of pension funds is the “international best practice” and that there is a “conflict of interest” in CBSL managing the EPF. They are key pillars justifying government’s tripartite proposal.

These two positions are shockingly misleading given that four of the five largest pension funds in the world, in Norway, Japan, the U.S., and Singapore, are managed directly by state bodies or central banks. Therefore, ‘international best practice’ in pension fund management is the exact opposite of what the government and the IMF are proposing. We hence reject these baseless positions.

2. Corporate captivity and bailouts

It is clear that the EFC is desperately pushing for this proposal at a time of global uncertainty, to cushion the effects of the crisis and maximise gains. Under corporate influence within the proposed tripartite board, the private conglomerates can use the multi-trillion-rupee EPF to continue their unstable commercial operations without having to risk their own capital or savings to do so. This will severely erode the financial stability of the EPF and its returns.

3. Risk of front running

“Because the EPF is a colossal fund, its investment decisions can alter asset prices. This creates immense monetary value for the information generated by its investment decisions. Corporate representatives on the proposed tripartite board will be perfectly positioned to use this information to trade ahead of the EPF (front-running), buying assets cheaply and dumping them onto the EPF at inflated prices for guaranteed corporate gain, resulting in a reduction of returns to the EPF.

4. Unavoidable loopholes

“Presence of a separate group of investment analysts, trade union representatives and government officials within the proposed tripartite structure cannot prevent pre-market corporate access to EPF’s investment decisions. Investment proposals made by the analysts has to be first approved by the proposed tripartite committee, making it impossible to prevent corporate access to insider information on EPF investments.”

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Two arrest warrants issued for Gnanasara thera

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Galagoda Aththe Gnanasara

The Colombo High Court and Court of Appeal yesterday issued arrest warrants for the Bodu Bala Sena general secretary Galagoda Aththe Gnanasara in a case involving an alleged statement insulting Islam.

The arrest warrants were issued on Tuesday and Wednesday. The Court of Appeal issued an open warrant two weeks after the court rescinded the presidential pardon granted to the thera when he was serving a six-year term for contempt of court.

The Appeals Court also imposed a travel ban on the monk and ordered that the Controller General of Immigration and Emigration be informed of the restriction.

The case was taken up before Colombo High Court Judge Buddhika C. Ragala. Gnanasara Thera was not present when the case was called.

A medical report was submitted stating that Thera was unwell, while his sureties also failed to appear before court. His counsel, Asoka Weerasuriya, told court that his client wished to bring the case to an early conclusion and that representations had been made to the Attorney General in that regard.

However, after considering the submissions, the High Court judge said he was not satisfied with the medical report submitted on behalf of the accused. The court also noted the failure of the sureties to appear.

The judge subsequently ordered that Gnanasara Thera be arrested and produced before court.The Attorney General filed the case under provisions of the Penal Code, alleging that remarks made by Gnanasara Thera concerning the Holy Quran amounted to an insult to Islam.

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CA dismisses GR’s writ petition against arrest

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Gotabaya

A two-member bench comprising Court of Appeal President Justice Rohantha Abeysuriya and Justice Sarath Dissanayake yesterday (1) dismissed a writ petition filed by former President Gotabaya Rajapaksa seeking judicial intervention to prevent his arrest under the Prevention of Terrorism Act (PTA) in connection with the ongoing investigations into 2019 Easter Sunday terror attacks.

The writ petition was rejected in limine.

In the petition, the former President cited Inspector General of Police Priyantha Weerasooriya, Criminal Investigation Department (CID) Director Shani Abeysekera, the Officer-in-Charge of the CID’s Special Investigations Unit and the Attorney General as respondents. The ex-President sought the court intervention after the arrest of former head of the State Intelligence Service (SIS) retired Maj. Gen. Suresh Sallay over the Easter Sunday attacks.

Since then , former Director of Directorate of Military Intelligence (DMI) has been named as a suspect.

Earlier, the Fort Magistrate’s Court imposed a travel ban on him in relation to investigations stemming from allegations made by Asad Moulana in the Channel 4 documentary on the Easter attacks.

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