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| Sunday, 14 September 2003 |
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| News Business Features Editorial
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Govt. considers restoring 99-year lease on State land The Government is considering giving State land on a 99-year lease to the private sector to establish and develop commercial enterprises. A paper has been submitted for Cabinet approval by Minister of Commerce and Consumer Affairs Ravi Karunanayake, the Sunday Observer learns. The main objective of putting forward this proposal is to give a degree of viability, predictability and stability to the projects and thereby facilitate the key decision making process in investments. State land constitutes a significant portion of the country's land resources and one of the main constraints in establishing and developing commercial enterprises is the non-availability of land on a long and sustainable basis to private entrepreneurs. There is a tremendous upsurge in business and investor confidence due to the ongoing peace process and the economic and political situation of the country. Therefore, an increasing number of business people are willing to undertake a variety of commercially viable ventures on a 'build own operate' basis, but a crucial reason that holds them back is the lack of a stable and secure regime for long lease of State land. With the withdrawal of the 99-year lease facility, private entrepreneurs have been severely constrained when launching new projects to add value to the national economy. Commercial ventures in the industry, service and agriculture sectors would essentially permit lease holders to make productivity enhancement decisions as owners of land. Absence of such stability in the land lease handicaps productivity decisions of entrepreneurs. Agriculture in Sri Lanka is characterised by non-viable small holdings, high cost of production, gross inefficiency, low productivity, poor output and high prices. The high prices have been attributed to the inefficient state of agriculture due to non-availability of land on secure and stable long-term leases among other factors. At present, the maximum period State land can be obtained on lease is 33 years. The proposed restoration of the 99-year lease facility will contribute to increasing the income of the rural masses as well as employment generation through market-oriented business activities. (SG) |
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