The Ministry of Lands has launched an internal investigation into the purchase of a building for the Land Reforms Commission (LRC).
According to reports, the building—deemed unsuitable for office use—was purchased last year at a cost of Rs. 240 million.
The matter has been highlighted in the latest audit report released on the Land Reforms Commission, which raised concerns about the acquisition of office premises that do not meet required standards.
The audit revealed that the Commission had been operating on a lease basis at Gregory Road and No. 475, Kaduwela Road, Battaramulla, during the period 2016–2024.
Despite Cabinet approval granted on November 7, 2023 (Cabinet Decision No. CM/23/186/615/002-II) to establish the LRC office on the fourth floor of the Ministry of Lands, this decision had reportedly been disregarded. Instead, the Battaramulla building, previously used on a lease basis, was purchased in June 2024 for Rs. 240 million.
The audit further observed that the building is unsuitable for office operations, as it contains pools, passageways, and corridors typical of a hotel, in addition to poor interior lighting.
Deputy Minister of Lands Dr. Susil Ranasinghe stated that the issue has been recently brought to light and confirmed that an internal investigation is currently underway.
“When we examined the documents, everything appeared to be in order. However, during our site inspection, it was evident that the building was not suitable for office use. Therefore, further investigations are being conducted,” Dr. Ranasinghe said.
The Deputy Minister further noted that although Cabinet approval had been granted to locate the office on the fourth floor of the Lands Ministry, the construction work on that floor is still ongoing. Once completed, the Land Reforms Commission will be relocated to the approved premises.
Dr. Ranasinghe also announced that, in the near future, all land-related institutions will be brought together under one roof to improve public access to services.
Meanwhile, in response to the audit report, the management of the Land Reforms Commission stated that since December 1, 2016, the Commission’s head office has been operating on a lease basis at No. 475, Kaduwela Road, Battaramulla.
The management further noted that several attempts had been made to relocate the office to another leased building following proper procurement procedures. Eventually, the decision was made to purchase the current building on June 25, 2024, in line with Cabinet Memorandum No. CM/24/1153/615/014-I, through a formal procedure.
According to the Commission, the building—along with the adjoining 6.5-perch vacant land in addition to the 29-perch main premises—was purchased for Rs. 240 million, based on official valuation reports.
The building had been identified for development, with the Central Engineering Consultancy Bureau (CECB) assisting in related work.
Further, approval was obtained under Commission Paper No. 12894 at the 811th session of the Commission held on August 28, 2024, to appoint the CECB for the development and expansion of the building’s office space.
However, the audit has recommended that the Commission take steps to improve the building’s premises and rectify the identified deficiencies.
