COPE exposes irregularities in UDA land leases, major financial losses 

• Reveals land on James Peiris Mawatha leased for Rs. 12 b for 99-years in 2019 without Board of Directors approval; unapproved conditions were included in lease agreement
• Highlights loss of 
• Rs. 330 m due to leasing land in Fort D.R. Wijewardena Mawatha without formal Board approval; demands detailed reports on these incidents within two weeks
• Auditor General’s Department points to various issues with UDA’s accounting system, particularly in valuing project land
• Instructs to transfer ownership of Parliament complex held by UDA to Parliament 
• Orders a comprehensive report on all investment lands owned by UDA to be submitted within two weeks
• Discloses 22 housing projects built under Urban Revitalisation Program using 
• Rs. 48 b Govt. funds with only one completed project obtains condominium management certificate
• Uncovers UDA spending 
• Rs. 667.6 m on house maintenance from 2023 up to May 2024

The Committee on Public Enterprises (CoPE) has unveiled significant irregularities in the leasing and management of lands by the Urban Development Authority (UDA) causing major financial losses. 

At a meeting held last week under the Chairmanship of MP Rohitha Abeygunawardana, the CoPE findings highlight the need for stricter oversight and compliance within the UDA to ensure transparency and accountability in managing public assets and funds.

CoPE disclosed that a six-acre land on James Peiris Mawatha, Colombo 02 was leased for Rs. 12 billion for 99-years in 2019 without the necessary approval from the Board of Directors. During the drafting of the lease agreement, it was revealed that unapproved conditions were included alongside those submitted and approved by the Board. 

It was revealed that disciplinary investigations are currently underway against the Legal Director responsible for drafting the agreement and the development of the land remains stalled.

In addition, CoPE highlighted a loss of Rs. 330 million incurred by the UDA due to the leasing of 2 acres, 2 roods, and 21.4 perches of land on Fort D.R. Wijewardena Mawatha without formal Board approval. 

The Committee has demanded a detailed report on these incidents within two weeks.

Officials from the Auditor General’s Department pointed out various problematic aspects of the UDA’s accounting system, particularly in assessing the value of project lands. 

They also noted that the ownership of the land on which the Parliament complex stands is still held by the UDA and instructed that it be transferred to Parliament. The Chair of the Committee also ordered a comprehensive report on all investment lands owned by the UDA to be submitted within two weeks.

The UDA has completed 13,602 houses in 22 housing projects using 

Rs. 48,156 million Government funds under the Urban Revitalisation Program for ghetto dwellers in Colombo. However, 66 houses in these complexes remain vacant. 

UDA officials assured the Committee that measures would be taken to settle the owners of the vacant houses soon. 

Despite this, only one of the completed projects has obtained a condominium management certificate. 

Consequently, the UDA has spent Rs. 667.6 million on house maintenance from 2023 up till May 2024. Transferring ownership of the houses to the relevant individuals would relieve the UDA of this maintenance burden.

The committee also addressed the lack of adequate parking facilities in Colombo. 

Work on two parking garages proposed by the UDA halted in mid-2021 after spending Rs. 230 million. UDA officers informed the Committee that construction has resumed to complete the garages for public use.

State Minister Indika Anuruddha Herath and MPs Dayasiri Jayasekara, Madhura Withanage, Sanjeeva Edirimanna, Major (Retd.) Sudarshana Denipitiya, Upul Mahendra Rajapaksha, and Premnath C. Dolawatte attended the meeting.