Janatha Estate Development Board and State Plantation Corporation of Sri Lanka have failed utilize its assets including land and property in a productive and income generating manner.
Failure to recover the lease rent A number of 571 estates belonging to the Janatha Estate Development Board and State Plantation Corporation of Sri Lanka had been given on lease to 23 divisional plantation companies in the year 1995.
As for 3 of those plantation companies, the value of net assets had not exceeded Rs. 200 million as at 31 December 1994, and hence, lease rents could not be recovered since 1995 from those companies in terms of the lease rent agreement Auditor General’s Department highlighted.
However, by the year 2011, it had been identified that the value of net assets of those companies had been over Rs. 200 million, but due to failure in taking action to revise the lease rents stated in the agreements, no lease rent whatsoever had been recovered by the Government from 45 estates under the said two companies.
Of the lease rent amounting to Rs. 175,481,744 recoverable from Kurunegala Plantation Company as at 31 December 2017, a sum of Rs. 129,760,612 had remained due from the year 2009. Taking action to recover that lease rent remained inefficient, AG’s report said.
Land and properties owned by the Janatha Estate Development Board (JEDB) , have been undervalued at very low rates and given on long-term lease during the previous regime, COPE inquiry revealed.
The 6,250 sq. ft. building bearing no. 175 at Vauxhall Street has been given to Asoka Glass Company on a 35 year lease at the rate of Rs. 10.42 per sq. ft, or Rs. 65,137.50 per annum.
Also, 4,586 sq. ft. of the same building has been given to Thilona Lanka on a 30 year lease at an annual Rs. 105,000 lease.
Kandy Tyre House has received 5,322 sq. ft. of the building for 30 years for Rs. 159,660, or at Rs. 30 per sq. ft. per year.
At the same time, Mr. Paint Lanka occupies 14,592 sq ft. at Rs. 1.02 per sq. ft. and 1,07 sq. ft. at Rs. 178.40 respectively.
Meanwhile, 14,500 sq. ft. of no. 32 at Darley Road has been given to Man Care Centre for Rs. 19.25 per sq. ft. per annum.
From the same building, New Zealand College received 28,921 sq. ft. for Rs. 13.49 per annum, while Higher Technical Institute given 11,500 sq. ft. for two years at the rate of Rs. 60 per sq. ft.
For Lakeside Property Development, a little over one acre from the same property has been leased out for 53 years at Rs. 93,497 per perch.
The payment due is Rs. 921,693,426, but the JEDB has accepted Rs. 15,520,512 only.
COPE has instructed for the immediate suspension of the leasing of the Vauxhall Street property, valuate it anew in accordance with the prevailing market prices to lease it at a suitable rate.
(LI)