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.”
The Sri Lanka Navy seized two [02] Indian fishing boats and apprehended 14 Indian fishermen while they were poaching in Sri Lankan waters, during a special operation conducted in the sea area north of Mannar in the dark hours of 08 Feb 25.
The seized boats together with the fourteen Indian fishermen were brought to the Iranativu Island and they were to be handed over to the Assistant Directorate of Fisheries, Kilinochchi for onward legal proceedings.
A sudden power cut has been reported across the island.
Accordingly, the Ceylon Electricity Board (CEB) said steps are being taken to restore the power supply.
President Anura Kumar Disanayake invited Sri Lankan exporters to rebuild and thrive on a robust economic foundation.
The President emphasized that our country faces the challenge of capturing market share from a position of relative weakness. He pointed out that, to overcome this, external support had to be sought. In this regard, he highlighted that the government is prepared to provide assistance for recovery based on the current economic stability.
President Anura Kumar Disanayake made these remarks at the 26th Presidential Export Awards Ceremony.
The 26th Presidential Export Awards, organized by the Sri Lanka Export Development Board (EDB), was held on Friday (07) at the Bandaranaike Memorial International Conference Hall (BMICH) under the patronage of President Anura Kumar Disanayake.
The main objective of the awards ceremony is to recognize exporters who have made significant contributions to the economic development of Sri Lanka.
The Presidential Export Award, presented by the President, is the highest honour for Sri Lankan exporters who have made significant contributions to the export sector and economic development.
The Presidential Export Awards program, initiated by the EDB in 1981, has been held annually to recognize Sri Lanka’s top exporters. The awards ceremony for the 2023/24 financial year took place this year.
A total of 14 major awards and 51 awards in the categories of production and services were presented, with recipients gaining the opportunity to use the Presidential Export Award logo as a marketing tool for three years.
President Anura Kumar Disanayake further emphasized the critical importance of the trust placed in Sri Lanka by international economic stakeholders to stabilize the country’s economy. He noted that the global market economy is interconnected, not entirely independent.
He further pointed out that the primary challenge facing Sri Lanka is securing a substantial share of the market amidst the current global division of markets and the ongoing competition to reclaim market shares.
President Anura Kumar Disanayake noted that the global market has become an interconnected network. He emphasized that in order for the country to become a key participant in this market, it must engage in trade agreements that are beneficial to Sri Lanka. He cautioned that aggressive, reckless approaches to market penetration would not be successful, stressing the need for strategic, thoughtful engagement.
The President further stated that the government is already taking steps to provide the necessary technical support for Sri Lankan exporters to enter the market with high-quality products. He highlighted the government’s focus on supplying new goods and services in response to global changes, in line with international market trends.
Regarding the reduction of electricity bills, the President mentioned that the government is prioritizing renewable energy sources to maintain long-term stability in energy costs. He added that efforts are underway to lower costs and ensure stable pricing over the next few years.
President Disanayake also emphasized that the government is committed to playing a pivotal role in advancing the nation’s economy to new heights. He noted that even small or misguided decisions can have significant negative impacts on the economy, and therefore, decisions regarding the economy must be made with great caution and foresight.
In his remarks, the President assured that the government is fully committed to fulfilling exporters’ requests, which are vital to strengthening the nation’s economy and maintaining a strong economic foundation.
Finally, the President invited Sri Lankan exporters to unite in strengthening the economy, stressing the importance of collaboration and mutual understanding to navigate the challenges of economic recovery and growth effectively.
The ceremony was attended by several distinguished individuals, including Minister of Industry and Entrepreneurship Development Sunil Handunnetti, Minister of Labour and Deputy Minister of Economic Development Anil Jayantha Fernando, Minister of Energy Kumara Jayakody, Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe, Secretary to the Ministry of Industry and Entrepreneurship Development Thilaka Jayasundara, Chairman and Chief Executive of the Export Development Board of Sri Lanka Mangala Wijesinghe, Chairman of the Ceylon Chamber of Commerce Duminda Hulangamuwa, along with various Ministers, Deputy Ministers, Parliamentarians, foreign diplomats, Secretaries to the Ministries, and members of the EDB.
[PMD]
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