The government will prepare legislation banning the further sale of state or private land to non-citizens.
President Mahinda Rajapaksa in his capacity as the Minister of Finance and Planning has forwarded a proposal to the Cabinet of Ministers seeking approval to instruct the Legal Draftsman to draft legislation to impose restrictions on transfer of lands to foreigners.
Accordion to the President's proposal, transfer of state or private land by way of a sale, donation, gift, or by any other disposition to a person who is not a citizen of Sri Lanka will be prohibited.
Further a sale cannot be sold or transferred to a company incorporated in Sri Lanka where any foreign shareholding of such Company is 50 % or above to a Foreign Company, unless exemption is granted in terms of the proposed Act.
Under the proposed act, the state or private lands could be leased out subject to stipulations to non-citizens for a maximum period of 99 years, instead of outright sale.
The Cabinet has given its approval to the proposed legislation.