• Mahaweli Authority identifying land for investments 

The Land and Irrigation Ministry stated the proposal to set up a land bank is still at the discussion stage, and that it would be a practical and effective approach to manage State-owned land.

Speaking to The Daily Morning, the Land and Irrigation Deputy Minister, Aravinda Senarath said the Government has already begun the initial groundwork. “We are identifying such land now. For instance, we have spoken with the Mahaweli Authority to identify land that can be used for investment opportunities. When that process is finalised, we can bring all those lands under a land bank. Its establishment is still at the discussion level. It will be a successful and effective approach to manage State-owned land.”

He added that there is currently no dedicated process for handling land earmarked for development, and that the absence of such a mechanism has created delays and uncertainty for potential investors. “Establishing a land bank would introduce a clear mechanism to make land available without long and tedious clearance procedures.”

The move aligns with plans announced by Industry and Entrepreneurship Development Minister Sunil Handunneththi, who recently said that a land bank would soon be set up to acquire land suitable for industrial development. He noted that next year’s (2026) Budget allocates Rs. 120 billion for industries and Rs. 80 billion for credit relief for industrialists. He said that these allocations show the State’s intention to strengthen the industrial sector.

Sri Lanka’s system for administering State land has long been weighed down by various issues such as outdated documentation, boundary disputes, and multiple layers of approval involving national and provincial authorities. Investors regularly face long delays when seeking land, particularly due to slow environmental and local-level clearances, unresolved transfers, and conflicting claims.