Sri Lanka state agency to acquire listed company land

ECONOMYNEXT – Sri Lanka’s Urban Development Authority, a state agency, has acquired land belonging to Cargo Board Development Company, the publicly traded firm said.

The 16.5 perch land was bought by the firm in 2010 to build a carpark. Sri Lanka’s Magapolis and Western Development Ministry had informed the firm that the UDA had acquired the land, the firm said in a stock exchange filing.

The UDA has been given sweeping acquisition powers by the elected ruling class, not just to take private land for public purposes but also for commercial development, going beyond the limits of the eminent domain, undermining the freedom and property rights of Sri Lankan citizens, liberty advocates say.

However, Cargo Boat did not say they had any objection to the takeover. The UDA will build a multi-storied car park there. No disclosure was made regarding compensation, or whether there will be a capital gain. The stock had last traded at Rs102. (Colombo/Sept10/2016)

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