By Prageeth Sampath Karunathilaka
The tourist industry is generating much controversy with the news that the sale of state-owned lands in Sigiriya tourist zone is taking place via an organised racket
A shocking investigation by Prageeth Sampath Karunathilaka of the Daily Mirror reveals an organised, large-scale racket involving the fraudulent sale of state-owned lands within the highly sensitive Sigiriya tourist zone. The article details how state lands originally granted to low-income farmers are being illegally transferred to wealthy businessmen and hotel owners using forged documents and fake identities. This systemic corruption is reportedly led by a deep-seated network of corrupt land administration officials, including certain Grama Niladharis and Land Officers, who manipulate regulations and defy directives from the Commissioner General of Lands. The ongoing fraud persists despite numerous official circulars and internal investigations, creating immense fiscal risk and raising serious concerns about governance and accountability in the administration of public property, particularly in archaeologically and economically vital regions like Sigiriya.
The sale of state-owned lands in Sigiriya tourist zone to millionaire businessmen through forged documents has turned into an organised racket. It has been revealed that some officials engaged in land administration are leading this operation. Among them are certain Grama Niladhari and Land Officers who are involved in land brokering. They facilitate the sale of state lands and operate within a network of interconnected corrupt officials. It is regrettable that, in some cases, even Divisional Secretaries have become unwitting participants. Lands issued under grants to members of the ‘farmer’ class’ under the Land Development Ordinance are being sold in this manner through the preparation of forged documents.
State owned lands are public property, and their ultimate ownership lies with the President. The President holds full authority to allocate state land to poor farmers for cultivation or to low-income families for residence. This power of land allocation has been delegated to officials under the Land Development Ordinance, subject to conditions and regulations. The authority for supervision and administration lies with the Commissioner General of Lands. There have been instances where certain officials have misused this authority to prepare forged documents and sell lands to businessmen in Sigiriya, in violation of the Commissioner General’s orders and instructions.
State lands distributed
By 2005, cases of state lands being distributed in violation of legal provisions were reported to the Ministry of Home Affairs. The Secretary to the Ministry informed the Commissioner General of Lands of this matter by letter No. General/2006 dated 20.11.2006. Following that notification, the Commissioner General of Lands, through Circular No. 2007/1 dated 09.01.2007, instructed Divisional Secretaries to carry out allocation duties related to lands under grants in accordance with the Land Regulations of the Land Development Ordinance.
On 03.02.2010, the Presidential Secretary’s Office issued Circular No. SP/RD/02/10 to the Secretaries of Ministries, outlining measures for the “proper management of state lands. However, despite the issuance of this circular, the transfer of government lands through forged documents has continued. Drawing attention to this issue, the Commissioner General of Lands issued Circular No. 2014/06 on 24.09.2014, stating that steps would be taken to register a declaration invalidating the documents through which grant transfers had been carried out using fraudulent documents. Accordingly, it was also emphasised to the Divisional Secretaries that, under the Land Development Ordinance, the Land Development Regulations 2012 had been enacted through the Extraordinary Gazette No. 1787/36 dated 07.12.2012.
The Department of the Commissioner General of Lands also informed the Bar Association of Sri Lanka regarding the registration of fake notarial deeds for government lands. This was conveyed in Letter No 4/10/255583 dated 15.06.2019. The Registrar General issued a circular on 18.08.2022, informing land registrars regarding the growing trend of registering forged deeds for government lands. The circular also noted that the Auditor General and the Public Accounts Committee had also taken notice of this matter.
Although such legal measures have been introduced to prevent the sale of government lands through forged documentation, these actions were challenged in a letter sent by a veteran cricketer and his wife to the Commissioner General of Lands on 05.01.2021. In that letter, they stated that, upon examining the transfer deed of a land they had purchased in the Sigiriya area, it was found that the land was state owned and that they were therefore ineligible to purchase it. They further informed the Commissioner General that they had no objection to taking legal action against the individuals responsible for such misconduct. The Commissioner General of Lands expressed appreciation for their honesty in his letter No. 4/G/Central/Ma/Dambu/201 dated 21.01.2021.
This state-owned land that was fraudulently acquired is located above Kayanwala Wewa, offering a breath-taking view of Sigiriya Rock. This plot of land, known as Kayanwala Kale or Kahatayaya, had been granted to an individual of the farmers’ class for cultivation through the Land Development Ordinance under License No. A. E 445D/L. L 287. The Grama Niladhari certified a fake National Identity Card that shows an address claiming the cricketer’s wife is residing in Ihala Erawula Grama Niladhari Division in Dambulla. The land was acquired in her name under the State Land Transfer Programme for Low-Income Families for Economic Development. It was also revealed that the relevant recommendation had been issued by the Head of Economic Development Division.
Ihala Erawula Grama Niladhari was accused of transferring a grant by presenting false information. Dambulla Divisional Secretary notified the District Secretary on 06.01.2021 to initiate an investigation into the matter. Subsequently, the Grama Niladhari was suspended on 11.01.2021.
Forged documents
State lands are being sold using forged documents, even to prominent members of the society, by those who believe their illegal activities will never be uncovered. This is because the officials involved possess the expertise to manipulate the system governing the implementation of land orders and regulations to suit their interests. Moreover, those skilled in fraudulent land administration are aware that members of the farming class lack the ability to challenge such unlawful sales. However, two elderly individuals came forward to expose yet another such fraud to the Commissioner General of Lands.
In 1956, “Thalkote Settlement” was established near Ramakele Stupa in the Sigiriya Archaeological Reserve. From that settlement, a woman named Ranmanika received a plot of land. She settled on the property and successfully developed it. As a result, she was awarded a Swarna Bhoomi Deed by the President in 1986. After her death, ownership of the land was officially transferred to her only daughter, H. M. Chandrawathi, on 24.04.2015.
This undisputed government land was later transferred to a person residing in Palugaswewa Divisional Secretariat Division, with the approval of the Divisional Secretary. The transfer involved a financial transaction and was formalised through a notarial deed registered on 28.04.2017. Dambulla Divisional Secretary approved this transaction by letter No. 5/3/2/2/6701 dated 05.07.2017. Seven months later, the new owner sold the land to a person from Sigiriya by executing another notarial deed on 01.01.2018. Permission for this transfer was granted under Land Order No. 139. When it was discovered that the second buyer was a hotel owner whose property adjoined her land, D. M. Wijeratne, the husband of Chandrawathi, the original owner, inquired to determine how a state land had ended up in the hands of a businessman.
On 16.02.2021, he lodged a complaint with Matale District Secretary, alleging that government officials had conspired to forge documents and illegally take possession of the land. Following this issue, an internal inquiry was held on 24.03.2021. The Central Province Department of the Land Commissioner commenced a further investigation on 15.10.2021. Later, on the orders of the Secretary, the Ministry of Public Administration and Home Affairs began a separate investigation on 17.01.2023 through its Internal Investigations Unit. During all these investigations, the elderly couple submitted affidavits exposing the racket involving the sale of state lands in the Sigiriya area. These statements are included in investigation file No. HAF/INV/05/2023-01-(ii), held by the Ministry of Home Affairs, and file No. CPC/LC/LD/2/27/177, held by the Central Province Land Department.
Not stopping from revealing these facts, they examined the file 5/3/2/2/6071 of the Land Division of Dambulla Divisional Secretariat regarding the transfer of state land and obtained copies of the affidavit expressing willingness to transfer the land, the letters exchanged between the Dambulla Divisional Secretary and the Palugaswewa Divisional Secretary regarding the transfer of the land, and investigated the information contained in those letters.
They went to the Justice of the Peace, who had signed a letter found in the Divisional Secretariat’s file. He stated that he hadn’t witnessed any land transfer and, confirming this, issued a letter on 2022.03.10. They also went to Demunnewa Grama Niladhari Division No. 594, which is listed in the documents as the residence of the person who purchased the land, and made an inquiry.
In that regard, the Grama Niladhari and the Administrative Grama Niladhari on duty in that division have issued a letter dated 27.12.2021 stating that such a person does not reside in the division. Accordingly, the Letter No. 5/3/2/2/6701 between Dambulla Divisional Secretary and Palugaswewa Divisional Secretary concerning the transfer of land by mail, as well as the points certified in that letter by the officers regarding the transfer of state land under Grant Deed No. Ma/Pr/6701, has been strongly challenged.
Land issue reported to CID
After complaining to the Commissioner General of Lands, further investigation has been referred to Matale Senior Superintendent of Police Office through Letter No 4/J/Central/Ma/Dambu/220, dated 12.12.2022. Following an extensive inquiry conducted on 22.08.2022, the matter was reported to the Criminal Investigation Department, which on 16.11.2022 issued instructions to the Commissioner General of Lands, and based on these instructions, the matter was referred for further investigation. Dambulla Divisional Secretary has also been informed through Letter NO 4/J/Central/Ma/Dambu/220 on 22.04.2022 to suspend further action on the land until the investigation is completed. Matale Special Crime Investigation Unit has completed its investigation and taken steps to obtain the current IGP’s instructions regarding the future course of action.
As there are no remaining state lands in the villages surrounding Sigiriya Rock, the illegal trade has now expanded to selling state lands in the nearby villages of Gedigaswalana, Udawalayagama, and Avudangawa, located close to the Habarana tourist area. Compared to the town of Sigiriya, these villages are still home to a low-income population. As a result, they are often compelled to obey the directives of government officials. Poverty drives many of them to sell the state lands they occupy, and corrupt officials exploit this situation by covertly transferring those lands to hotel owners in exchange for money. In such transactions, a “promissory agreement” is made before a notary. According to that agreement, possession of the state land must be handed over, and no one may enter the land until the full payment is made. Possession cannot be obstructed. If these conditions are violated, compensation can be claimed from the grantee by issuing a letter of demand.
With the support of the “Matale Regional Economic Advancement Project”, state lands in Udawalayagama received licences under the Land Development Ordinance to be distributed among the low-income families. These licences were issued under Form 144 of the Commissioner General of Lands. At present, encroachment has begun on those lands through the issuance of letters of demand. Grant deed bearing No. Ma/Dambu/2334 was issued on 29.02.1996 for a plot of land called Moragaha Elahena in the village of Avudangawa. The ownership of this land to the daughter of the original grantee was certified by the Assistant Divisional Secretary of Dambulla by Letter No DSM/DB?LND/Ma.Dambu/ 2334 on 25.05.2025. Two days after the ownership was certified, a promissory agreement was signed to sell the land for Rs. 4,000,000, with the buyer being the brother of a land officer in the area where the cricketer’s wife had declared her residence as a low-income household.
Uncovering the details of this racket where fake documents are interconnected is extremely difficult. Apart from the facts revealed through complaints made by either the transferor or the transferee of the land, exposing such fraudulent transactions through other means is nearly unthinkable. This is because the very officials responsible for enforcing government land regulations are themselves involved in the racket.
Illegal settlers
The former District Secretary of Matale submitted the necessary recommendations by January 2025 to take administrative measures aimed at halting this racket. As a result, one administrative officer and one officer from the Land Division were transferred. On 07.02.2025, Dambulla Divisional Secretary was instructed to suspend the land Kachcheri that was handling the regularisation of 993 illegal settlers who had no legal rights in the Sigiriya Tourist Area. Administrative decisions were also taken to transfer officers who had been serving in the same division in the Sigiriya area for a long time to other Grama Niladhari divisions.
Although the former District Secretary attempted to disrupt this land sale racket through these administrative measures, the deeply entrenched land racket mechanism proved to be stronger. A prime example of this is the protection of a suspended Grama Niladhari, who had been accused of providing false information, but was subsequently given a high-paying position in the Land Department of a temple. It is reported that the transfer process of certain Grama Niladhari officers has also been halted due to the intervention of a local politician. It has also been revealed that the security forces have begun paying attention to this underground racket and the sale of state lands in the Sigiriya area and secret reports have been submitted to higher authorities for decision-making.
No response from Minister Lal KanthaThe Daily Mirror made several attempts to reach K.D. Lal Kantha, Minister of Agriculture, Livestock, Land and Irrigation to obtain his view about the issues connected to the land grab in Sigiriya, but there was no response. This writer tried calling the minister on his landline in office and also his mobile phone, to no avail.
“We’ve received complaints about forged deeds for state lands”- Commissioner General of LandsWhen this newspaper inquired about this matter with Commissioner General of Lands, Chandana Ranaweerarachchi, he stated the following: “We have received complaints about the creation of forged deeds for state lands and their sale around Sigiriya in Dambulla. A committee has been appointed, and a separate investigation is being conducted based on these complaints. Lands allocated for the farming class are distributed through Land Kachcheri, and recommendations from Grama Niladharis and Divisional Secretaries are required to obtain such lands. Fake deeds cannot be created for these lands. These lands cannot be sold and anyone acting outside the existing law will be subject to legal action. Government employees are prohibited from working as land brokers. Therefore, if any government official, regardless of rank, is involved in a land scam, legal action will then be taken against such persons. But complaints should be submitted with evidence”
“We cannot investigate certain complaints”- Matale Additional District Secretary (Land)This writer also attempted to contact Matale District Secretary, L. C. Madanayake, on several occasions regarding this matter, but he was unavailable. Later, when this newspaper approached Matale Additional District Secretary (Land) S. R. M. Riyaldeen, she provided the following explanation: “We receive complaints not only about fake deeds, but also regarding land issues. However, we cannot investigate certain complaints because the District Secretary does not possess land powers — these powers are vested with the Divisional Secretary. We cannot make decisions when such powers are being exercised. Our role is limited to administrative intervention. We also address citizens’ issues by contacting the relevant institutions. In recent days, we have not received complaints regarding fake deeds or forged titles in the Dambulla and Sigiriya areas. Only individual complaints are received and we address them through the relevant institutions.”
No response from Dambulla Divisional SecretaryAlthough this writer attempted to inquire about this matter with Dambulla Divisional Secretary, Upeksha Kumari, on multiple occasions, we did not receive a response.