• Four lands developed without titles
• Rs. 3.23 b spent on lands without ownership
• Rs. 268.7 m revaluation unrecorded
• Rs. 1.63 m spent before lease secured
• Ministry recommends land grant transfer

The National Aquatic Resources Research and Development Agency (NARA) has spent over Rs. 3.23 billion developing lands it does not legally own, the latest audit report by the National Audit Office (NAO) reveals.

According to the audit, NARA has developed four lands without securing proper ownership or completing formal land transfer procedures. 

These lands – located in Rekawa, Kadolkele, Kalpitiya, and Kudawa – have been used for various aquaculture and fisheries development projects, with substantial public funds invested over several years.

The report has highlighted that as of 31 December 2019, the value of the lands being used by NARA without legal ownership stood at Rs. 3,231,216,479 (Rs. 3.23 billion). 

Additionally, a revaluation conducted in 2014 had assessed three of these lands at Rs. 268.75 million, but this amount had never been incorporated into NARA’s financial statements, breaching public sector accounting standards.

One significant case concerns a three-acre land in Kudawa, Kalpitiya, where NARA had begun constructing a multi-species fish hatchery complex in 2020 at a cost of Rs. 1.63 million – two years before securing a formal lease agreement in February 2022. 

The project remains incomplete and the agency has failed to comply with required procedures for abandoned or stalled capital works, as stipulated under Paragraph 77 of Sri Lanka Public Sector Accounting Standards 7.

While a request had been made to transfer the Kudawa land through a long-term lease, the ministry overseeing NARA had subsequently recommended securing the land via a Government grant, which had been formally proposed in a letter dated 26 May 2023.

In response to the audit, NARA officials have acknowledged the delays, attributing them to non-payment of related fees and administrative complications. They further stated that discussions were underway to explore possible assistance from the Government of India to resume halted development activities.

The audit had also flagged separate financial irregularities, including the leasing of a fish food manufacturing machine valued at Rs. 16.86 million to a private company, the failure to recover outstanding lease payments amounting to Rs. 4.65 million, and a lack of action against continued payment defaults under subsequent lease agreements.

When contacted by The Sunday Morning, Deputy Minister of Fisheries, Aquatic and Ocean Resources Rathna Gamage confirmed that all audit findings were currently being reviewed. “We will take the necessary action to address the concerns raised and ensure responsible management of public assets,” the Deputy Minister stated.