The Cabinet has approved the long-term leasing of 15 state plantation properties to selected investors, Cabinet Spokesman Nalinda Jayatissa said on Tuesday.
The properties belong to the Sri Lanka State Plantations Corporation (SLSPC), the Janatha Estates Development Board (JEDB) and Elkaduwa Plantations Limited. They include agricultural land, scenic bungalows and inactive factories that the Government describes as underused.
In the first phase, the Government offered 1,514 hectares of land, 10 tourism bungalows and scenic locations, and 15 inactive factories. The offer drew 470 initial expressions of interest. Shortlisted applicants were then invited to submit detailed proposals, and 44 formal proposals were received.
Cabinet approval for the 15 leases was granted on the recommendation of the High-Level Procurement Committee, which reviewed the proposals. The Government says the aim is to make better use of state-owned assets and attract private investment to the plantation sector.
Jayatissa did not say how long the lease periods will be or how much money the Government hopes to raise. He also did not answer reporters’ questions on whether the properties would go to parties loyal to the Government, according to EconomyNext.
Background
Most of the land held by the SLSPC and the JEDB dates to the land reform laws of 1972 and 1975, when large privately owned plantations were taken over by the state. Many tea, rubber and coconut estates were nationalised and later placed under state plantation entities.
The leasing process follows a public call for expressions of interest from investors in three stages. Investors first registered interest, those shortlisted then submitted detailed proposals, and the procurement committee made recommendations to the Cabinet. The Cabinet has now approved leases for 15 of the properties offered.
State plantation companies have for years been a subject of debate in Sri Lanka over how their land should be used and who should manage it. Leasing arrangements of this kind allow the state to keep ownership of the land while an investor operates it for an agreed period.
What it means
For estate communities and workers living on or near the affected properties, the practical effect will depend on the terms of each lease. The Government has not yet published those terms, including the lease periods and the conditions on how the land is to be used.
For investors and the tourism sector, the decision opens access to bungalows and scenic locations that have so far been held by state entities. Readers can expect the lease details to become clearer once agreements are signed.
