📈 Land Ownership Risks: The Shadow of Special Regimes

A new report highlights how Sri Lanka’s fragmented land governance undermines property rights, turning private ownership into a "conditional" asset despite formal titling. • The Core Crisis: While the Bimsaviya program aims to replace slow, fraud-prone deeds with state-guaranteed titles, only 1.06 million parcels (out of 16 million) have been titled in 25 years. This dual system creates "dead capital" and market confusion. • Institutional Fragmentation: Even with a title, ownership is often overridden by parallel authorities like the UDA, tourism zones, and investment corridors. These "special regimes" can rezone or restrict land usage without updating the central registry, leading to: Banking & Credit: Lenders hesitating to accept land as collateral due to unpredictable post-title interventions. Investment: Investors discounting land values where usage rights are opaque or subject to sudden change. • Sector Impact: Key growth areas like tourism and real estate development suffer from "governance by exception," where discretion trumps predictable law. • Proposed Reforms: Establish one authoritative land system where all restrictions are digitally visible. Mandate that special regimes operate through the land registry to eliminate "invisible risks." Introduce time-bound decisions and "deemed approvals" to prevent indefinite bureaucratic delays.