Over Rs.5bn. income for UDA through land salesPublished : 8:49 am April 4, 2017 | No comments so far | | (832) reads |
By Thilanka Kanakarathna
The Urban Development Authority (UDA) made an income of more than Rs. 5 billion through the sale of land during 2016/2017, Megapolis and Western Development Minister Champika Ranawaka said yesterday.
The Minister said the Authority had been in the habit of selling land for development projects as valued by the Valuers’ Department.
“We now sell them at the commercial value which ensures that we make a profit, which will be used to cover the losses in the past,” he said.
The UDA had faced some financial difficulties in 2016, after it had constructed 18,000 housing units for shanty dwellers. The expense for the project was to be covered with the sale of the units, but as this was not followed through due to numerous protests by several parties, the project was halted.
“We had to pay the contractors Rs. 8 billion, for which we did not have the funds. So we sold land owned by the UDA at a commercial price, to ensure that it didn’t go bankrupt,” he said.
Officials had decided on which lands were to be sold with cabinet approval and ensured they were not entangled in legal issues.
Accordingly the Authority had received Rs. 67 million from the Krrish Transwork Square Project and Rs. 483 million from the sale of the Janashakthi Land.
The UDA was yet to receive Rs. 285 million for the Mayura Place land, Rs. 686 million for the Thalapathpitiya land, Rs. 605 million for the Nawaloka car park land, Rs. 3 billion for the Shang property and Rs. 94 million for the Narahenpita Bakery Watta property.
“The UDA has the authority to sell land without cabinet approval and that is how it has functioned so far. However, we will now take cabinet approval for everything that it does,” the Minister said.