Daily Lankadeepa E-Paper

One big ‘land sale’ in a buyers’ market

Talk of ' selling the family silver'! The Government has now proposed to lease out as many as 50 properties to foreign and local investors. The irony, however, is that there are hardly any takers. Interest has been sluggish. The UDA (Urban Development Authority) has been tasked with the sale at an upcoming investor forum at the Water's Edge resort in Greater Colombo to let local businesses know what's available. Foreign interest has been low, especially for lands in the Colombo Municipality area, which is the business district. A lot of people who turn up are brokers, we are told.

One issue is the vagaries of political winds and uncertainty of not knowing what will happen to the investment if the Government changes. Another key concern is the chaotic Forex policy in motion with the situation getting worse in terms of reserves and concerns over whether repatriation of proceeds will be affected.

Prospective investors have long had to follow a cumbersome procurement process. Corruption and the need to grease along the way from department to department has been another disincentive. All Governments, and the incumbent Finance Minister's Budget last week have the refrain of a 'one-stop-shop' to cut the red-tape, but that is limited to words. It is "being set up", we are told, with a separate committee called CabinetAppointed Management Committee on Investment (CAMCI) in an effort to expedite direct investments (FDIs). The genuineness of an investor has to be distinguished; a corporate robber baron or a 'state capitalist' from an out and out money launderer or a terrorism group, but fast-tracking even for local parties with foreign partners remains a tiresome exercise.

With a futuristic Port City with a complete solution and separate laws on repatriation, taxes etc., offering competition, the UDA's exercise riddled with convoluted procedures is at a disadvantage. At the same time, it is one thing to have a mini Dubai or Singapore in one secure location, it is another to have scattered properties turning the whole country into one big "land sale".

With the economy in shambles and the Government showing signs of desperation to win dollars, the properties on offer are going to be a buyers’, not a sellers’ market. The UDA is in an unenviable position to clinch a sale, unless for a song, a mess of pottage.

OPINION

en-lk

2021-11-21T08:00:00.0000000Z

2021-11-21T08:00:00.0000000Z

https://dailylankadeepa.pressreader.com/article/281741272679189

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