Cabinet this week approved to reduce lease payments for leasing state land for commercial agriculture purposes.
Noting that the leasing of state land for agriculture purposes has been limited due to a lack of similar lease concessions afforded to those leasing land for housing and other commercial activities, Land and Parliamentary Reforms Minister Gayantha Karunathilaka proposed to amend the laws to afford the lessors similar concessions.
Accordingly, land leased for commercial agriculture purposes will be exempt from being charged three times the annual tax as per the 1947 Land Act. Further, instead of the 50 % lease payment increase every five years as stipulated in the legislation, only 20 % will be added to the previous year’s lease amount.
Further, in case of the extension of the lease period, the land value will be assessed as an increase of 20% from the previous lease.