To obtain a Long Term Lease Bond

Q: Who is eligible to obtain a long-term lease bond for state land?

A:

• An individual selected through a public tender process, Land Kachcheri, or official auction.
• An individual who requests state land for charitable, religious, or scholarly purposes.
• Community-based societies for recognized community purposes.
• Registered co-operative societies.
• Government-owned entities such as banks, corporations, and statutory boards.
• Entities undertaking commercial, industrial, or agricultural projects.

Q: What documents are required to obtain a long-term lease?

A:
If the applicant is an individual,

1. A written request.
2. Existing license or written permit (if applicable).
3. An affidavit (in the format issued by the Divisional Secretary, affirming that the applicant owns land not exceeding the 50-acre limit).
4. A survey plan or sketch of the land.
5. An affidavit affirming to pay the lease.

If the applicant is a registered community society,

• A written request from the society.
• A copy of the society’s registration certificate.
• A copy of the society’s constitution.
• An affidavit affirming to pay the lease.
• A survey plan or sketch of the land.

If the applicant is a limited company,

• A copy of the company’s registration certificate.
• Details of the company’s directors.
• A detailed project proposal.
• An affidavit affirming to pay the lease.
• A survey plan or sketch of the land.

Q: What are the conditions included in a lease bond?

A:

• The term of the lease is 30 years.
• Lease rental must be paid annually.
• The lease amount will be revised every five years by 5% (not applicable to residential lands).
• The land must be used solely for the purpose for which it was leased.
• The land must be maintained in a proper state of repair.
• The land shall not be sublet, assigned, or mortgaged without the prior written consent of the Land Commissioner General.
• Special conditions may be included depending on the purpose of the lease.
• The lease bond is subject to cancellation if any of the conditions are violated.

To obtain a deed / grant under the Land Development Ordinance

Q: What types of deeds have been issued under the Land Development Ordinance?

A:

• Swarnabhoomi
• Jayabhoomi
• Rathnabhoomi
• Ranbima

Q: What is the importance of a deed/grant?

A:

• It is a legal document signed by the Honorable President that grants you ownership of land which you have obtained and developed under the provisions of the Land Development Ordinance.

Q: What are the requirements to obtain a deed or grant?

A:

• The land must have been received under a permit issued under the Land Development Ordinance.
• The land should be well-developed. If granted for residential purposes, a house must be constructed and occupied.
• Any outstanding dues to the government must be paid.
• There should be no disputes regarding the land.
• The land must have been surveyed.

Q: How can a deed or grant be obtained?

A:

• Submit your application to the Grama Niladhari or Field Instructor if you meet the above qualifications.
• The Grama Niladhari or Field Instructor shall inspect the land and submit a report to the Divisional Secretary, Land Commissioner, Assistant Land Commissioner (Inter Provincial).
• The Land Officer / Colonization Officer shall also inspect the land and submit a report, certifying that you have developed the land, to the Divisional Secretary, Land Commissioner, Assistant Land Commissioner (Inter Provincial).
• The Divisional Secretary, Land Commissioner, and Assistant Land Commissioner (Inter-Provincial) shall arrange for the land to be surveyed by the Survey Department, demarcate the boundaries with boundary stones, and obtain the survey plan.
• Upon receipt of the plan, the Divisional Secretary / Land Commissioner / Assistant Land Commissioner (Inter-Provincial) shall prepare the Deed / Grant and submit it to the Land Commissioner General through the e-Slims system.
• The Land Commissioner General shall review the Deed/Grant, and if found to be correct, shall submit it to the Presidential Secretariat for the signature of the President.
• Upon receipt of the Deed/Grant bearing the signature of the President, it shall be forwarded to the Divisional Secretary or Land Commissioner / Assistant Land Commissioner (Inter-Provincial).
• The Divisional Secretary or Land Commissioner / Assistant Land Commissioner (Inter-Provincial) shall inform you to pay a service charge of LKR 100 for the Deed/Grant.
• You are required to promptly pay the service fee without delay.
• Subsequently, the Divisional Secretary or Land Commissioner / Assistant Land Commissioner (Inter-Provincial) shall register the Deed/Grant at the Land Registry and duly provide it to you.

Q: : What are the differences between a Deed/Grant and a Permit?

A: Permit

• A permit is a temporary document.
• A permit can be cancelled if the land is not developed, not occupied, or alienated.
• A permit is signed by the Divisional Secretary or Land Commissioner / Assistant Land Commissioner (Inter-Provincial).

Deed/Grant

• A deed/grant is signed by the President.
• The ownership of land disposed of by a deed/grant is vested in the grantee, subject to the conditions stipulated in the grant.

Q: What are the benefits of a deed/grant?

A:

• A clear deed enables you to mortgage your property with a bank to secure a loan for land development or home repairs.
• It can also be used as security for a loan on behalf of your child.
• It can also be held as security at the court.
• It can be used as proof of residence.

Nomination of a successor for a Deed/Grant issued under the Land Development Ordinance

Q: Nomination of a successor for a Grant

A:

• Only the spouse, children, or a blood relatives of the grantee may be nominated as the lawful successor to the land disposed of by the grant.
• Subject to the limitations set out in the grant, you may divide and nominate succession among the above-mentioned persons at your discretion.
• Accordingly, three copies of Land Com. Form 155 must be obtained from the Divisional Secretariat or the office of the Land Commissioner / Assistant Land Commissioner (Inter-Provincial), duly completed, and submitted.
• This form may be certified by a Notary Public or Justice of the Peace, or Land Registrar.
• These documents shall be registered at the Land Registry, and one copy will be issued to you.
• It is advised that you keep it in safe custody.

What happens if no successor is nominated

• If the grantee dies without nominating a successor, the ownership of the land shall be determined in accordance with the provisions of the relevant Acts and Ordinances governing state lands.
• In the event that no successor is nominated, the heirs must submit the relevant documents to the Divisional Secretary or the Land Commissioner / Assistant Land Commissioner (Inter-Provincial) and initiate the succession process.

Q:Can a nomination be cancelled?

A:

• Yes.
• A previous nomination will be cancelled upon registering three new forms with the names of the newly nominated successors.
• For further information, please contact one of the following officers.
• Your Grama Niladhari.
• Colonization Officer or Field Instructor of your respective village.
• Divisional Secretary.
• Land Commissioner, Assistant Land Commissioner (Inter Provincial) (Debarawewa, Mahiyanganaya, Ampara, Anuradhapura, Polonnaruwa, Kanthale, Monaragala and Trincomalee).

Q:What is the procedure for transferring a grant to another person?

A:

• The transferee must be a blood relative or belong to the same income category as the grantee.
• Prior approval of the Divisional Secretary or the Land Commissioner / Assistant Land Commissioner (Inter-Provincial) must be obtained.
• The transfer must be executed by a Deed of Transfer.

Obtaining a Loan Using a Grant as Security

Q:How Can a Grant Be Used to Obtain a Loan or Mortgage ?

A:

• You can proceed with the relevant institution by following the procedure for obtaining a loan using land as security.

Q:Which institutions provide loans against property deeds?

A:

• People’s Bank.
• State Mortgage and Investment Bank.
• Bank of Ceylon.
• Development Finance Bank.
• National Housing Development Authority.
• Housing Development Finance Corporation Bank of Sri Lanka.
• Societies registered under the Cooperative Societies Ordinance.
• Other institutions approved by the Land Commissioner General.
• Institutions registered under the Banking Act No. 30 of 1988.
• Institutions registered under the Finance Act No. 11 of 1963.
• Institutions registered under the Control of Finance Companies Act No. 27 of 1979.
• Institutions registered under the Finance Companies (Amendment) Act No. 78 of 1988.

Q:What happens if the loan is not repaid

A:

• The relevant financial institution may proceed to sell the mortgaged land in order to recover the outstanding loan amount.
• In such an instance, anyone can purchase the land, regardless of their income category.
• However, the purchaser must adhere to the conditions stipulated in the deed/grant.
• When the purchaser transfers the land, prior written approval from the Divisional Secretary or the Land Commissioner / Assistant Land Commissioner (Inter-Provincial) must be obtained.

Q:Can the deed/grant be used as security for a loan obtained by my child?

A:

• Yes, it can. However, you will be the guarantor for the loan amount in such a case.