CHAPTER 297 LAND REFORMextwprlegs1.fao.org/docs/pdf/srl13619.pdfCap. 297] Laws Nos. I of 1972. 39 of 1975. LAND REFORM CHAPTER 297 LAND REFORM A LAW TO ESTABLISH A LAND REFORM COMMISSION

Cap. 297]

LawsNos. I of 1972.

39 of 1975.

LAND REFORM

CHAPTER 297

LAND REFORM

A LAW TO ESTABLISH A LAND REFORM COMMISSION TO FIX A CEILING ON THE EXTENT

OF AGRICULTURAL LAND THAT MAY BE OWNED BY PERSONS, TO PROVIDE

FOR THE VESTING OF LANDS OWNED IN EXCESS OF SUCH CEILING IN THE

LAND REFORM COMMISSION AND FOR SUCH LAND TO BE HELD BY THE

FORMER OWNERS ON A STATUTORY LEASE FROM THE COMMISSION, TO

PRESCRIBE THE PURPOSES AND THE MANNER OF DISPOSITION BY THE

COMMISSION OF AGRICULTURAL LANDS VESTED IN THE COMMISSION SO AS

TO INCREASE PRODUCTIVITY AND EMPLOYMENT. TO PROVIDE FOR THE

PAYMENT OF COMPENSATION TO PERSONS DEPRIVED OF THEIR LANDS UNDER

THIS LAW AND FOR MATTERS CONNECTED THEREWITH OR INCIDENTAL

THERETO

[26th August. 1972.]

Short title.

Purposes ofthis Law.

Ceiling onagriculturalland.

I. This Law may be cited as the LandReform Law.

2. The purposes of this Law shall be toestablish a Land Reform Commission withthe following objects :-

(a) to ensure that no person shall ownagricultural land in excess of theceiling; and

(b) to take over agricultural land ownedby any person in excess of theceiling and to utilize such land in amanner which will result in anincrease in its productivity and inthe employment generated fromsuch land.

PART

CEILING ON AGRICULTURAL LAND

3. ( I) On and after the date ofcommencement of this Law the maximumextent of agricultural land which may beowned by any person, in this Law referredto as the" ceiling n, shall-

(a) if such land consists exclusively ofpaddy land, be twenty-five acres; or

(b) if such land does not consistexclusively of paddy land, be fifty

acres, so however that the totalextent of any paddy land, if any,comprised in such fifty acres shallnot exceed the ceiling on paddyland specified in paragraph (a).

(2) Any agricultural land owned by anyperson in excess of the ceiling on the date ofcommencement of this Law shall as fromthat date-

(a) be deemed to vest In theCommission; and

(b) be deemed to be held by such personunder a statutory lease from theCommission.

(3) In the computation of the acreage ofagricultural land for the purpose of applyingthe ceiling, the following areas situated onsuch land shall not be taken into account :-

(a) an area not exceeding half an acre inextent surrounding the residence ofthe owner of such land;

(b) any garden surrounding staffquarters or labour lines on suchland, not in excess of one-eighth ofan acre in extent for every familyresident in such quarters or lines;and

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LAND REFORM [Cap. 297

Interim orderdeclaringpossession ofanyagriculturalland subject tothe ceiling maybe made by theCommission.

(c) any area not exceeding half an acreset apart for a family burial ground.

(4) For the purpose of subsection (1)-

(0) where any land is subject to amortgage, lease, usufruct or lifeinterest, the mortgagor, the lessoror the person in whom the title tothe land subject to the usufruct orlife interest is ; and

(b) where any land is held on a permitor a grant issued under the LandDevelopment Ordinance, thepermit-holder or the alienee on suchgrant,

shall be deemed to be the owner of suchagricultural land:

Provided, however, that where the lessorof any agricultural land under paragraph (0)

of this subsection is the State, the lessee ofsuch agricultural land shall be deemed to bethe owner.

4. (1) Where there is a dispute betweenparties as to the ownership of anyagricultural land which is subject to theceiling the Commission may, after suchinquiry as it may deem fit, make an interimorder declaring one of such parties to beentitled to the possession of suchagricultural land. Every interim order shallbe published in the Gazette and shall comeinto force on the date of such publication.

(2) Within two weeks of the publicationof the interim order in the Gazette theCommission of its own motion or any of theparties to the dispute referred to insubsection (l) may refer such dispute to acourt of competent jurisdiction for finaladjudication.

(.3) Till the final order is made by acourt on such reference, the interim ordershall be valid and effectual and shall not becalled in question in any court by way ofwrit or otherwise. So long and for so longonly as the interim order is in force theperson declared by such interim order to beentitled to possess the agricultural land shallbe deemed for the purpose of section 3 to bethe owner of such agricultural land.

(4) As long as the interim order is inforce the Commission shall not alienate theagricultural land to which the interim orderrelates:

Provided, however, that, where noreference has been made under subsection(2), the interim order made under subsection(I) shall have the effect of a final orderunder subsection (3).

5. Where after the date ofcommencement of this Law any personbecomes the owner of agricultural land inexcess of the ceiling, any such land ownedby such person in excess of the ceiling shallas from that date-

(0) be deemed to vest In theCommission; and

(b) be deemed to be held by that personunder a statutory lease from theCommission.

6. Where any agricultural land is vestedin the Commission under this Law, suchvesting shall have the effect of giving theCommission absolute title to such land asfrom the date of such vesting, and free fromall encumbrances.

7. For the purposes of this Law, whereany agricultural land is co-owned, each coowner shall be deemed to own his share insuch land as a distinct and separate entity.

8. For the purposes of this Law, whereany agricultural land is owned by a privatecompany or co-operative society, theshareholders of such company, or society, asthe case may be, shall be deemed to ownsuch land for the purposes of section 3, inproportion to the shares held by eachshareholder of such company, or society, asthe case may be.

9. No servitude over any agriculturalland shall in any manner be affected by achange of ownership of such land under theprovisions of this Law, unless and until suchservitude has been determined by theCommission. Where such servitude is sodetermined, the owner of the servitude shallbe entitled to such compensation for beingdeprived of the servitude as may be decidedby the Commission.

Specialprovisions to

apply wherepersonsbecome ownersof agriculturalland in excessof the ceilingafter the dateof commencement.

Effect ofvesting ofagriculturalland in theCommissionunder thisLaw.

Specialprovisionsrelating to coownedagriculturalland.

Ownership ofagriculturalland by bodycorporate.

Servitude notto be affectedby change ofownership ofagriculturalland.

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Rights oftenantcultivators notto be affectedby change ofownership.

Statutorylessee maysurrender leaseon giving theprescribednotice to theCommission.

Agriculturallands subject toa mortgage,lease, usufructor life interest.

10. The rights of tenant cultivatorsunder the Paddy Lands Act, No. I of 1958*,shall not be affected by a change ofownership of any agricultural land underthe provisions of this Law.

II. (I) Subject to the provisions ofsubsection (3), any person who is a statutorylessee of any agricultural land undersubsection (2) of section 3, paragraph (b) ofsection 5 or subsection (6) of section 13 maysurrender such lease on giving theprescribed notice to the Commission.

(2) Where a statutory lease IS

surrendered under subsection (I) theCommission may manage or deal with thelands so surrendered in accordance with theprovisions of this Law.

(3) The statutory lessee of anyagricultural land shall not be entitled tosurrender such lease under subsection (I)where such statutory lessee has in thedeclaration made under section 18 expresseda preference under paragraph (f) ofsubsection (2) thereof.

12. (I) Where any agricultural landsubject to a mortgage, lease, usufruct or lifeinterest vests in the Commission under theprovisions of this Law the mortgagee, lessee,usufructuary or the holder of the lifeinterest, as the case may be, shall have a liento the extent of his interest in suchagricultural land on the compensationpayable to the owner thereof and wheresuch compensation is not sufficient to meethis claim, such mortgagee, lessee,usufructuary or such holder of the lifeinterest shall be entitled to enforce his rightsagainst any land subject to such mortgage,lease, usufruct or life interest in the hands ofthe owner of the agricultural land vested inthe Commission after the ceiling ofagricultural land is applied to him.

(2) Where on or after May 29,1971, anyagricultural land has been alienated by wayof lease to or by any person who ownsagricultural land in excess of the ceilingsuch lease shall from the date ofcommencement of this Law be deemed tohave been terminated.

(3) Where a lease in respect of anyagricultural land is deemed to have beenterminated under subsection (2) the lesseeshall be entitled to receive from the lessor ascompensation for improvements made tosuch agricultural land during the period ofthe lease such amount as may be determinedby the Commission.

13. (I) Where on or after May 29,1971, any person who owned agriculturalland in excess of the ceiling has alienatedany agricultural land to any other person,such alienor shall, within three months ofthe date of commencement of this Law,report such alienation to the Commission inthe prescribed form.

(2) Where the Commission finds thatany alienation of agricultural land on orafter May 29, 1971, has been calculated todefeat the purposes of this Law theCommission may by order made under itshand declare that such alienation is null andvoid. Every such order shall be sent byregistered post to the alienor and alienee ofthe agricultural land to which that orderrelates.

(3) Any alienor or alienee aggrieved byan order made under subsection (2) maywithin three weeks of the receipt of suchorder appeal to the Minister In theprescribed form, and the Minister may onsuch appeal make such order as the Ministermay deem fit in the circumstances of thecase.

(4) The receipt of the order shall bedeemed to be effected at the time at whichthe letter sent under subsection (2) would bedelivered in the ordinary course of post.

(5) Where no appeal has been preferredunder subsection (3) within the time allowedtherefor against the order made undersubsection (2), such order, or where anappeal has been preferred, the order asamended, varied or modified on appeal shallbe published in the Gazette. The order sopublished shall be final and conclusive andshall not be called in question in any court,whether by way of writ or otherwise.

Certaintransfers ofagriculturalland to bereported to theCommissionwithin threemonths of thecommencementof the Lawand theCommissionmay invalidatesuch transfers.

• Repealed by the Agricultural Lands Law, No. 42 of 1973, itself repealed by the Agrarian Services Act (No. 58of 1979).

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Inter familytransfer ofagriculturalland after thecommencementof this Law.

(6) Where the Commission under theprovisions of subsection (2) declares thatany alienation is null and void, no right,title or interest shall be deemed to havepassed to the alienee under the instrumentof such alienation and such agricultural landshall vest in the Commission and the alieneeshall be deemed to hold such land under astatutory lease from the Commission.

(7) Nothing contained in the precedingprovisions of this section shall affect or bedeemed to affect any transfer made by afiduciary of his interest in any agriculturalland to a fideicommissary in accordancewith the provisions of the Abolition ofFideicommissa and Entails Act.

14. (I) Any person who becomes astatutory lessee of any agricultural landunder this Law may within three monthsfrom such date make an application to theCommission in the prescribed form for thetransfer by way of sale, gift, exchange orotherwise of the entirety or portion of suchagricultural land to any child who iseighteen years of age or over or to a parentof such person.

(2) The Commission may by order madeunder its hand grant or refuse to grantapproval for such transfer. Such order shallbe made within one year of the date ofapplication under subsection (I). Every suchorder shall be sent by registered post to theapplicant under subsection (1). Any suchapplicant aggrieved by the order may appealto the Minister within three weeks of thereceipt of such order. The receipt of theorder shall be deemed to be effected at thetime at which letters would be delivered inthe ordinary course of post.

(3) Any transfer effected in accordancewith the provisions of an order made undersubsection (2) or such order as amended,varied or modified on appeal shall have theeffect of transferring right, title or interest inproperty so transferred free of the statutorylease.

(4) Any order made under subsection (2)or where an appeal has been preferred theorder as amended, varied or modified onappeal shall be final and conclusive .andshall not be called in question in any court,whether by way of writ or otherwise.

(5) Nothing contained in the precedingprovisions of this section shall affect ordeem to affect any transfer made by afiduciary of his interest in any agriculturalland to a fideicommissary in accordancewith the provisions of the Abolition ofFideicommissa and Entails Act.

15. The following shall be the terms andconditions of every statutory lease of anyagricultural land ;-

(a) The statutory lease may beterminated at any time at the optionof the Commission. Unlessterminated earlier such lease shallrun for one year from the date ofcommencement of his statutorylease, and may be renewed for afurther period of one year. Saveand except as hereinbeforeprovided, no further renewals ofsuch lease shall be given, exceptwith the express approval of theMinister.

(b) The amount payable as lease rentper year by the statutory lessee ofany agricultural land shall be-

(i) if such land is not paddy land,one-fifteenth of thecompensation payable to suchlessee as the former owner ofsuch land; or

(ii) if such land is paddy land, onetenth of the compensationpayable to such lessee as theformer owner of such land.

(c) The statutory lessee shall be entitledto manage the land subject to thestatutory lease and to appropriatethe profits thereof during the periodof such lease. Such lessee shall beentitled with the written approval ofthe Commission to develop andimprove such land and to effectrepairs to buildings standingthereon. Where a lessee has with thewritten approval of the Commissiondeveloped or improved such land oreffected such repairs to buildings heshall be entitled to receivecompensation therefor in cash.

Terms andconditions ofstatutoryleases.

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(d)

(e)

(j)

(g)

(h)

The lease rent due from the statutorylessee shall be deducted from anycompensation payable under theprovisions of this Law.

Where the statutory lessee causes anywanton damage to the land subjectto a statutory lease or to anyagricultural crop or building orfixtures thereon, he shall be guiltyof an offence and the Commissionmay withhold all or any part of thecompensation payable to him. Thestatutory lessee may, however, withthe written approval of theCommission, cut down any treesstanding on the land to which thelease relates.

It shall be the duty of the statutorylessee to allow the workers who arelawfully resident on the land ownedby him on the day immediatelyprior to the date of commencementof this Law to continue so to resideon such land and to continue theemployment of the workers on suchland who were In regularemployment on such day.

Where anyone who was not lawfullyresident on the land held by thestatutory lessee on the dayimmediately prior to the date ofcommencement of his statutorylease, attempts to take or takes upresidence on such land, it shall bethe duty of the statutory lessee toimmediately report the fact In

writing to the Commission and thepolice officer In charge of thenearest police station.

Where any statutory lessee fails tocomply with the provisions ofparagraph (g) he shall be guilty ofan offence and the Commissionmay withhold any compensationpayable to such statutory lesseeunder this Law.

16. Upon the receipt of a report underparagraph (g) of section 15 in respect of anyland subject to a statutory lease, anauthorized officer or agent of theCommission may give directions to anypolice officer in connexion with theejectment of all such occupiers of such landreferred to in the report, and such policeofficer shall take all such steps and may usesuch force as may be necessary for securingcompliance with such directions.

17. ( I) Where an authorized officer oragent is unable or apprehends that he willbe unable to eject the unlawful occupiers ofany agricultural land held by the statutorylessee on the day immediately prior to thecommencement of his statutory lease, heshall, on making an application In thatbehalf In the prescribed form to theMagistrate's Court having jurisdiction overthe area in which that land is situated, beentitled to an ex parte order of the Courtdirecting the Fiscal to eject such unlawfuloccupiers from that land.

(2) Where an order under subection (I)is issued to the Fiscal by the Magistrate'sCourt, he shall forthwith execute the orderand shall in writing report to the Court themanner in which that order was executed.

(3) For the purpose of executing theorder issued by the Magistrate's Courtunder subsection (I), the Fiscal or anyperson acting under his direction may usesuch force as may be necessary to enter theagricultural land to which the report relatesand to eject the unlawful occupiers, andtheir dependants, if any, therefrom.

PART II

DECLARATION IN RESPECT OF

AGRICULTURAL LAND AND VESTING AND

ALIENATION OF SUCH LAND

18. (1) The Commission may, byOrder published in the Gazette and in suchother form as it may deem desirable to givepublicity to such Order, direct that everyperson who becomes the statutory lessee ofany agricultural land shall, within a monthfrom the date of the publication of theOrder, or of becoming a statutory lesseeunder this Law make a declaration, in this

An authorizedofficer or agentof theCommissionmay issuedirections tothe police forthe ejectmentof unlawfuloccupiers of aland subject toa statutorylease.

Where anauthorizedofficer or agentis unable orapprehendsthat he will beunable to ejectunlawfuloccupiers ofagriculturalland subject toa statutorylease.

Declaration inrespect ofagriculturalland subject toa statutorylease.

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Law referred to as a .. statutorydeclaration ", in the prescribed form of thetotal extent of the agricultural land so heldby him on such lease.

(2) The declaration shall inter aliaspecify-

(a) (i) the name of each agriculturalland owned by the declaranttogether with such agriculturalland owned by any member ofthe family of the declarant onthe day immediately prior tothe date of commencement ofthis Law together with theextent of such land;

(ii) where the declaration is inrespect of an agricultural landowned by a family within themeaning of this Law the headof such family shall make thedeclaration and shall specifyin the declaration the totalextent of the agricultural landowned by such family and theextent owned by eachindividual member of suchfamily;

(b) the situation of each such land andthe postal address thereof anddirections for reaching such land;

(c) the nature of the crops grown oneach such land together with theacreage under cultivation and anyother particulars relating to the useof such land;

(d) the income derived from each suchland within the previous five yearsas declared to the CommissionerGeneral of Inland Revenue for thepurpose of income tax immediatelyprior to the date of commencementof his statutory lease;

(e) the value of each such land asdeclared to the CommissionerGeneral of Inland Revenue for thepurpose of wealth tax immediatelyprior to the date of commencementof his statutory lease; and

(j) the preference or preferences, if any,of the declarant as to the particularportion or portions of each suchland which he should be allowed toretain.

The declaration shall be accompanied bya survey plan or sketch map depicting theboundaries of the lands declared, and of theportion or portions, if any, which thedeclarant has expressed a preference toretain, and shall specify all encumbrancesattached to such land. Such portion orportions shall except in exceptionalcircumstances be contiguous areas of landwhich will result in minimum fragmentationof the whole land.

(3) Where any person who has made thedeclaration referred to in subsection (I) byoperation of law becomes the owner of anyagricultural land subsequent to suchdeclaration, or ceases to be owner of anypart of any land referred to in thedeclaration such person shall make a furtherdeclaration in respect of his land and theprovisions of subsection (I) shall apply tosuch declaration.

(4) Any person who becomes the ownerof agricultural land in excess of the ceilingon any day after the date of commencementof this Law shall, within one month ofbecoming such owner, make a declarationas provided for in the preceding provisionsof this section.

(5) Any person who fails to make anydeclaration required by any of the precedingprovisions of this section, or makes adeclaration knowing such declaration to befalse, shall be guilty of an offence and theCommission may forfeit any compensationpayable to him under this Law.

19. (I) The following provisions shallapply on the receipt by the Commissionof a statutory declaration madeunder section 18:-

(a) The Commission shall, as soon aspracticable, make a determination,in this Law referred to as a.. statutory determination ",specifying the portion or portions

Provisionsapplicable onthe receiptby theCommission ofa statutorydeclaration.

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22. (1) Any agricultural land vested inthe Commission under this Law may beused for any of the following purposes :-

(a) alienation for agriculturaldevelopment or animal husbandryby way of sale, exchange, rentpurchase or lease to persons who donot own agricultural land or whoown agricultural land below theceiling;

under his direction of theagricultural land permitted to beretained by the lessee underparagraph (a) ; and

(b)

of the agricultural land owned bythe statutory lessee which he shallbe allowed to retain. In makingsuch determination the Commissionshall take into consideration thepreference or preferences, if any,expressed by such lessee in thedeclaration as to the portion orportions of such land that he maybe allowed to retain.

The Commission shall publish thestatutory determination in theGazette and shall also send a copythereof to such lessee by registeredletter through the post. Suchdetermination shall be final andconclusive, and shall not be calledin question in any court, whether byway of writ or otherwise.

(c) specify any servitudeencumbrance attaching toagricultural land.

orsuch

Purposes forwhichagriculturalland vestedin theCommissionmay be used.

Effect of astatutorydeterminationpublishedundersection 19.

Contents of astatutorydeterminationpublished inthe Gazette.

(2) Before a statutory determination IS

made in respect of any agricultural land-

(a) the Commission may create any classof servitude on or over such land;

(b) the Commission shall have the rightto survey such land; and

(c) the statutory lessee shall be entitledto be paid such sum as theCommission may considerreasonable for fencing such land.

20. Every statutory determinationpublished in the Gazette under section 19shall come into operation on the date ofsuch publication and the Commission shallhave no right, title or interest in theagricultural land specified in the statutorydetermination from the date of suchpublication.

21. Every statutory determinationpublished in the Gazette under section 19shall inter alia :-

(a) specify the extent of the agriculturalland permitted by the Commissionto be retained by the statutorylessee;

(b) make reference to a survey planmade by the Surveyor-General or

(b) alienation by way of sale, exchange,rent purchase or lease to a personfor agricultural development oranimal husbandry, or for a cooperative or collective farm;

(c) alienation by way of sale inindividual allotments to persons forthe construction of residential houses;

(d) for a farm or plantation managed bythe Commission;

(e) utilization for any public purpose;

(f) alienation by way of sale to personswho were minors at the time of theimposition of the ceiling onagricultural land and whose parentswere dispossessed of such land inexcess of the ceiling by reason ofsuch excess land having vested inthe Commission under this Law;and

(g) alienation to any corporationestablished under the StateAgricultural Corporations Act or tothe Sri Lanka State PlantationsCorporation established under theSri Lanka State PlantationsCorporation Act.

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(2) Where any agricultural land hasbeen alienated by way of sale underparagraph (j) of subsection (I), the alieneeof such land may make payment for thepurchase of such land by way of bondsissued to a parent of such alienee, in respectof any agricultural land vested in theCommission.

26. (1) As soon as possible after thedate of commencement of this Law, theCommission may, by notice published in theGazette, call for applications in theprescribed form from persons for thealienation to them of any extent ofagricultural land by the Commission.

Applicationsfor alienationof agriculturalland by theCommission.

PART III

(b) by way of rent purchase, the annualrent for such land shall, as far aspossible, be not less than-

(ii) one-tenth of the compensationso payable if such land ispaddy land.

(2) Any application received by theCommission under subsection (1) shall bescrutinized by the Commission and shall bedisposed of on its merits by theCommission.

Compensationpayable by theCommission inrespect of landvested in itunder thisLaw.

is Price at whichland shall bealienatedby theCommission.

land

by way of sale, the price at whichsuch land is so sold shall, as far aspossible, be not less than thecompensation payable by theCommission to the former owner ofsuch land under this Law; or

(a)

COMPENSATION

28. (I) Compensation shall be payableby the Commission in respect of anyagricultural land vested in it under this Law.The compensation so payable shall be

27. Where any agriculturalalienated by the Commission-

(i) one-fifteenth of thecompensation payable by theCommission to the formerowner of such land if suchland is not paddy land; and

(3) No application received by theCommission under subsection (1) shall beentertained by the Commission from anyperson to whom the Commission is notentitled to alienate any agricultural landunder this Law.

(b) any employee of the Government orof any State Corporation, or of alocal authority, save and except forthe purpose of construction ofresidential houses.

25. The extent of any agricultural landalienated by the Commission to anindividual shall be such as to ensure as faras possible that the average income derivedfrom the development of such land shall notbe less than three hundred rupees permensem.

24. (1) The Commission may alienateany agricultural land to any person subjectto such terms and conditions as it may deemfit and as would ensure that such land isused for the purpose for which it wasalienated.

(2) Where any term or condition subjectto which agricultural land is alienated toany person by the Commission is notcomplied with, the Commission may byendorsement on a certified copy of theinstrument of alienation, cancel suchalienation, and thereupon such alienationshall be determined accordingly, and suchagricultural land shall re-vest in theCommission. Any determination of analienation made under this section shall befinal and conclusive and shall not be calledin question in any court, whether by way ofwrit or otherwise.

(3) In determining the persons to whomany agricultural land vested in theCommission shall be alienated, theCommission shall, as far as practicable,comply with the provision thatconsideration shall be given to persons fromthe administrative district where such land issituated.

23. Any agricultural land vested in theCommission under this Law shall not bealienated by the Commission to any of thefollowing persons :-

(a) persons who are not citizens of SriLanka; and

Specialprovisionsapplicable toalienation. ofagriculturalland by tbeCommission.

Terms andconditions ofalienation ofagriculturalland by theCommission.

Category ofpersons towhomagriculturalland shall notbe alienatedby theCommission.

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computed in accordance with the followingtwo criteria and shall be the higher amountso calculated :-

(a)

(b)

An amount not exceeding fifteentimes the average annual profit onsuch land during the previous fiveyears as assessed by theCommissioner-General of InlandRevenue, or where not so assessed,as declared to the CommissionerGeneral of Inland Revenue by theperson who was the previous ownerof such land on the dayimmediately prior to the date onwhich such land so vested, in thisPart referred to as the "formerowner ", if such land is not paddyland, and ten times such averageannual profit if such land is paddyland.

The value of such land as assessedby the Commissioner-General ofInland Revenue for the year ofassessment ending March 31, 1971,or where not so assessed, asdeclared by its former owner to theCommissioner-General of InlandRevenue for the purpose of wealthtax.

(c) the particulars of his claim; and

(d) how much of such compensation isclaimed by him.

30. (1) The Chairman of theCommission or such other officer as may beauthorized by him in that behalf shall, assoon as possible after the receipt of a claimfor compensation in respect of anyagricultural land vested in the Commissionmade by any person under section 29, referto the Chief Valuer the determination of thecompensation payable in respect of suchland, and such Chief Valuer shall submit hisdetermination to the Commission fordecision thereon.

(2) Where there is any dispute as to thepersons entitled to compensation in respectof any agricultural land vested in theCommission, the Chairman of theCommission or such other officer as may beauthorized by him in that behalf shall deferreferring to the Chief Valuer thedetermination as to the compensationpayable in respect of such land and shallrefer the dispute for decision to theappropriate court of civil jurisdiction, andshall, after such court makes its decision onsuch dispute, refer such claims to the ChiefValuer.

Determinationofcompensation,

Notice topersonsentitled tomake claimsto thecompensationpayable underthis law inrespect of anyagriculturalland vestedin theCommission.

(2) Where any agricultural land has notbeen assessed for the purpose of income taxor wealth tax the Commission may, inconsultation with the Chief Valuer, makeits own valuation for the purpose ofsubsection (I).

29. Where any agricultural land isvested in the Commission, the Chairman ofthe Commission shall, by notice publishedin the Gazette and in such other manner asmay be determined by him, direct everyperson who was interested in such landimmediately before the date on which suchland was so vested, to make, within a periodof one month reckoned from the datespecified in the notice, a written claim to thewhole or any part of the compensationpayable under this Law in respect of suchland and to specify in the claim-

(a) his name and address;

(b) the nature of his interest 10 suchland;

(3) The Chief Valuer shall give allclaimants to compensation in respect of anyagricultural land vested in the Commissionan opportunity to adduce before suchValuer in person or by a representativeauthorized by him in that behalf evidencewith regard to the value of such land, andshall make a determination as to thecompensation payable for such land, havingregard to the provisions of this Part.

31. (I) On receipt of the determinationof the Chief Valuer, the Chairman of theCommission shall subject to suchmodifications, if any, make an award as tothe compensation payable in respect of theagricultural land which is the subject-matterof such determination, and shall give noticeof such award to the person or personsentitled to such compensation.

(2) For the purpose of making anaward, the Chairman of the Commission orsuch other officer as may be authorized by

Commission tomake an awardas to theamount ofcompensation.

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LAND Rh'FUJ<.M L-

Payment ofcompensation.

Provision forcases wherecompensationis not accepted,&c_

Deductionsfromcompensation.

him in that behalf may, if such Chairman orother officer considers it necessary so to do,hold an inquiry, and such Chairman orother officer shall, by notice in writing,direct every claimant for compensation tobe present on such date, at such time andplace, as may be specified in the notice.

32. (1) Where no claim to thecompensation payable in respect of anyagricultural land vested in the Commissionis received in response to the notice undersection 29 from any person, other than theformer owner of such land, the Chairman ofthe Commission shall cause suchcompensation to be paid to such formerowner.

(2) Where any claim to thecompensation payable in respect of anyagricultural land vested in the Commissionis received in response to the notice undersection 29 from any person, other than theformer owner of such land, then, if everysuch claimant and the former owneramicably agree in writing as to the personsentitled to the compensation and theapportionment of the compensation amongthem, the Chairman of the Commissionshall cause the compensation to beapportioned and paid to such personsaccording to such agreement. If there is nosuch agreement, the Chairman of theCommission shall cause the compensationto be paid to any appropriate court of civiljurisdiction to be drawn by the personsentitled thereto.

33. Where any compensation payable toany person under this Law is not acceptedby him when it is tendered to him, or wheresuch person is dead or is not in existence oris not known, it shall be paid to anyappropriate court of civil jurisdiction to bedrawn by the person or persons entitledthereto.

34. (1) Where a person is entitled tocompensation in respect of any agriculturalland vested in the Commission under thisLaw, the Commission shall deduct orwithhold from the amount of suchcompensation such sums as the Commission

is authorized or required to so deduct orwithhold under this Law.

(2) For the purposes of this section, theexpression .. compensation" includes anyinterest which has accrued due on suchcompensation.

35. The compensation payable in respectof any agricultural land vested in theCommission under this Law shall beconsidered as accruing due from the date onwhich that land was so vested.

36. (1) Where any person is dissatisfiedwith the amount of compensation awardedto him under section 31 such person mayappeal against the award to the Board ofReview constituted under the LandAcquisition Act (hereinafter referred to as"the Board of Review") which is herebyvested with jurisdiction to entertain, hearand decide such appeal.

(2) Every appeal under subsection (I)shall be in writing and be addressed to theChairman of the Board of Review and betransmitted to, or delivered at, the office ofthat Board.

(3) Every appeal under subsection (1)shall-

(a) state the name and address of theappellant;

(b) mention as the respondent theChairman of the Commission orother officer who made the awardagainst which the appeal IS

preferred-;

(c) contain a concise statement of thedescription of the agricultural landin respect of which the award wasmade; and

(d) state the amount of compensation-claimed by the appellant and thereasons why he considers theamount awarded by the respondentto be insufficient.

(4) No appeal under subsection (1) shallbe entertained by the Board of Reviewunless it is preferred within twenty-one days

Whencompensationaccrues due.

Personsdissatisfiedwith theamount ofcompensationawarded mayappealtherefrom tothe Board ofReviewconstitutedunder the LandAcquisitionAct.

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Application ofcertain sectionsof the LandAcquisitionAct in relationto appeals tothe Board ofReview underthis Law.

Finality of anaward madeunder thisLaw.

Tender andpayment ofcompensation.

Power of theChairman oftheCommission topay advanceson account ofcompensation.

after the date on which notice of thecompensation under section 31 of this Lawwas received by the appellant.

37. (I) The provisions of section 24 ofthe Land Acquisition Act shall apply toproceedings before the Board of Review onany appeal to that Board under this Law.

(2) The provisions of section 25 of theLand Acquisition Act shall apply in relationto the decision of the Board of Review onany appeal to that Board under this Lawsubject to the following modifications :-

(a) subsection (4) of that section shallhave effect as though the provisothereto were omitted; and

(b) subsections (3) and (4) of thatsection shall have effect as thoughfor the expression "section 17"occurring in those subsections, therewere substituted the expression" section 31 ".

38. An award of the Chairman of theCommission, or any other officer authorizedby him in that behalf, or if instead of thataward, a new award has on appeal to theBoard of Review been made by that Board,such new award shall be final andconclusive and shall not be called inquestion in any court, whether by way ofwrit or otherwise.

39. Where an award is made undersection 31, the Chairman of the Commissionshall tender to the person who is entitled tocompensation according to that award theamount of compensation allowed to him bythe award or, if in lieu of that amount a newamount has been allowed as compensationby a decision of the Board of Review on anappeal by him to that Board, tender thatnew amount to him, and shall pay thetendered amount to him if he consents toreceive it.

40. The Chairman of the Commissionmay before the determination of a claim forcompensation under this Law pay to aperson whom he considers entitled to suchcompensation an advance, and any sum so

paid shall be deducted from the amount ofthe compensation awarded to him undersection 31.

41. The Central Bank shall issuesecurities under the provisions of theMonetary Law Act for the purpose ofsatisfying any right to compensation underthis Law and the securities so issued arehereinafter referred to as "Land ReformBonds ".

42. Compensation payable under thisLaw shall be so paid in cash and LandReform Bonds in such proportion as may bedetermined with the concurrence of theMinister in charge of the subject of Finance.The following provisions shall applyto the Land Reform Bonds issued undersection 41 :-

(a) Such bond shall be of twenty-fiveyears duration and shall carryinterest at the rate of seven percentum per annum.

(b) The holder of such bond shall beentitled to surrender them beforematurity with the approval of theMinister for the followingpurposes :-

(i) agricultural, industrial or otherdevelopment purposesapproved by the Minister;

(ii) construction of residentialbuildings with the approval ofthe Minister;

(iii) any other purposes as may beapproved by the Minister.

(c) The holder of such bonds shall beentitled to surrender them beforematurity at par value for thepayment of any Government duessuch as for the payment of capitallevy, estate duty and income tax.

Central Bankto issuesecurities forpayment ofcompensationunder this law.

Mode andmanner ofpayment ofcompensation.

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[§ 2, Law 39 of1975.]

Vestingofestate landsowned orpossessed bypubliccompanies.[§ 2, Law 39 of1975.]

Managementof vested estatelands.[§ 2, Law 39 of1975.]

PART IlIA

SPECIAL PROVISIONS RELATING TO ESTATE

LANDS OWNED BY PUBLIC COMPANIES

42A. (I) Every estate land owned orpossessed by a public company on the dateon which this Part of this Law comes intooperation" shall, with effect from suchdate-

(a) be deemed to vest in and bepossessed by the Commission; and

(b) be deemed to be managed under astatutory trust for and on behalf ofthe Commission by the agencyhouse or organization which, orthe person who, on the dayimmediately prior to the date ofsuch vesting, was responsible for.and in charge of, the managementof such estate land, for and onbehalf of such company, and suchagency house, organization orperson shall, subject to theprovisions of this Part of this Law,be deemed to be the statutorytrustee of such estate land.

(2) The vesting of an estate land undersubsection (I) shall have the effect of givingthe Commission absolute title to such estateland as from the date of vesting and, subjectas hereinafter provided, free fromall encumbrances.

(3) The terms and conditions of thestatutory trust, including the remunerationor agency fees of statutory turstees shall,subject as hereafter in this Part of this Lawprovided, be as prescribed by regulationsmade under this Law.

428. (I) Where any estate land isvested in the Commission under section42A, the statutory trustee of such estateland, shall, during the continuance of suchstatutory trust, be responsible for the goodand proper management of such estate land,subject to such general or special directionsas may from time to time be issued by theCommission.

• 17th October, 1975.

(2) No such statutory trustee shall byany act or omission cause the condition ofsuch estate land to deteriorate or the assets,movable or immovable, of such estate landto be destroyed, lost, damaged ordepreciated in value.

(3) It shall be the duty of such statutorytrustee to allow the workers who werelawfully resident on the estate land on theday immediately prior to the date of suchvesting to continue so to reside on suchestate land, and to continue the employmentof the workers who were in regularemployment on such estate land on suchday.

(4) No credit or other financialarrangement which relates to themanagement, supervision or development ofany such estate land or to the marketing ofthe produce of such land, and which is inforce on the date on which this Part of thisLaw comes into operation" shall bemodified or altered except with the writtenconsent of the Commission, and for thepurpose of securing compliance with thepreceding provisions of this subsection, theCommission may from time to time issuesuch directions as it may deem necessary orexpedient to any statutory trustee,commercial bank, public company, agencyhouse, broker or any other party to sucharrangement, and it shall be the duty ofevery person to whom any such direction isissued to comply therewith.

(5) (a) Subject to the provisions ofparagraph (b), where any estate land isvested in the Commission, the rights andliabilities of the former owner of such estateland under any contract or agreement,express or implied, which relates to thepurposes of such estate land and whichsubsists on the day immediately prior to thedate of such vesting, and the other rightsand liabilities of such owner which relate tothe running of such estate land and whichsubsist on such day, shall become the rightsand liabilities of the Commission; and theamounts required to discharge all suchliabilities shall bededucted from the amountof compensation payable in respect of suchestate land.

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Particulars tobe furnished bystatutorytrustees.[§ 2, Law 39 of1975.)

(b) The Minister may at any timerepudiate any liabilities referred to inparagraph (a), if he is of opinion that suchliabilities were incurred mala fide.dishonestly or fraudulently. Notice of therepudiation shall be given by the Minister tothe parties affected by such repudiation.

(c) Where the Minister under paragraph(b) repudiates any liabilities, such liabilitiesshall be deemed never to have become theliabilities of the Commission.

42C. (I) Where any estate land isvested in the Commission under this Part ofthis Law, it shall be the duty of the statutorytrustee of such estate land, within onemonth of the date of such vesting, to furnishIn writing to the Commission a declarationcontaining the following particulars ;-

(a) the name and postal address of theestate land;

(b) the name and address of the formerowner of the estate land;

(c) the situation and extent of the estateland, the plantations thereon, thearea covered by each suchplantation and the yield of suchplantation in each of the fivecalendar years immediatelypreceding the date of vesting;

(d) a description of the buildings,factories, machinery, implements,vehicles and other things, movableand immovable, belonging to theestate land;

(e) the balance sheet and profit and lossaccount of the estate land for eachof the five accounting yearsimmediately preceding the date ofvesting;

if) copies of declarations submitted tothe Commissioner-General ofInland Revenue in respect of anytax payable in respect of such estateland in each of the three accountingyears immediately preceding thedate of vesting;

(g) a statement of interim and finaldividends declared by the formerowner for each of the fiveaccounting years immediatelypreceding the date of vesting;

(h) particulars of sales of other estatelands, if any, in the administrativedistrict, of which the statutorytrustee has knowledge and whichhave taken place during the periodof three years immediatelypreceding the date of vesting; and

(I) such other particulars as may beprescribed; and

(2) A copy of the declaration furnishedto the Commission under subsection (I)shall be sent by the statutory trustee to theformer owner of such estate land who shallhave the right within ninety days of thereceipt by him of such copy, to address anyobservations on the information thereincontained, to the Commission.

(3) It shall also be the duty of thestatutory trustee of such estate land, tofurnish to the Commission in respect ofsuch estate land within four months of thedate of vesting-

(a) a profit and loss account in respectof the period commencing on theday following the last day of theprevious accounting year andending on the day immediatelypreceding the date of vesting;

(b) the balance sheet as at the dayimmediately preceding the date ofvesting; and

(c) such other information as may beprescribed.

42D. (I) Where any person who wasnot lawfully resident on any estate landvested in the Commission attempts to takeup, or takes up, residence on such estateland, it shall be the duty of the statutorytrustee and of the superintendent of suchestate land immediately to report the fact inwriting to the Commission and to the policeofficer in charge of the nearest policestation.

Ejectment ofunlawfuloccupiers ofvested estatelands.[§ 2, Law 39 of1975.)

XIj380


(2) Upon receipt by the Commission ofa report under subsection (1), an authorizedofficer or agent of the Commission may givedirections to any police officer in connexionwith the ejectment of such persons fromsuch estate land and such police officer shalltake such steps and may use such force asmay be necessary for securing compliancewith such directions.

(3) Where the authorized officer oragent of the Commission is unable orapprehends that he will be unable to ejectsuch persons from such estate land, he shall,on making an application in that behalf tothe Magistrate's Court having jurisdictionover the area in which the estate land issituated, be entitled to an ex parte order ofthe court directing the Fiscal to eject suchpersons from such estate land.

(4) Where an order under subsection (3)is issued to the Fiscal by the Magistrate'sCourt, he shall forthwith execute the orderand shall in writing report to the court themanner in which that order was executed.

42G. Any statutory trust under section42A may be terminated at any time at theoption of the Commission, and theCommission may at any time takepossession of any estate land vested in theCommission. Unless terminated earlier, suchtrust shall continue for one year from thedate of vesting, and if the Commission sodecides, be continued for a further period ofone year. No statutory trust may becontinued for any further period by theCommission, except with the expressapproval of the Minister.

428. (1) Any estate land vested in theCommission under this Part of this Lawmay be used for any of the followingpurposes :-

(a) alienation by way of sale, exchange,rent purchase or lease to personsfor agricultural development oranimal husbandry, or for a cooperative or collective farm orenterprise;

Termination ofthe statutorytrust.[§ 2, Law 39 of1975.]

Purposes forwhich estatelands vested intheCommissionmay be used.

[§ 2, Law 39 of1975.]

Servitudes notto beaffectedby the vestingof estate lands.[§ 2, Law 39 of1975.]

Estate landssubject tomortgages,leases, usufructor life interest.[§ 2, Law 39 of1975.]

(5) For the purpose of executing theorder issued by the Magistrate's Courtunder subsection (3), the Fiscal or anyperson acting under his direction may seekthe assistance of any police officer and mayuse such force as may be necessary to enterthe estate land and to eject such persons andtheir dependants, if any, therefrom.

42E. No servitude over any estate landshall in any manner be affected by thevesting of such estate land in theCommission under the provisions of thisPart of this Law, unless and until suchservitude has been determined by theCommission. Where such servitude is sodetermined, the owner of the servitude shallbe entitled to compensation.

42F. Where any estate land subject to amortgage, lease, usufruct or life interest isvested in the Commission under theprovisions of this Part of this Law, themortgagee, lessee, usufructuary or theholder of the life interest, as the case maybe, shall have a lien to the extent of hisinterest in such estate land on thecompensation payable in respect of suchestate land.

(b) alienation by way of sale inindividual allotments to persons forthe construction of residentialhouses;

(c) alienation to any corporationestablished or to be establishedunder the State AgriculturalCorporations Act or to the SriLanka State PlantationsCorporation established under theSri Lanka State PlantationsCorporation Act;

(d) for a farm or plantation managed bythe Commission directly or by itsagents;

(e) for village expansion or any otherpublic purpose.

(2) In determining the purposes forwhich estate lands vested in the Commissionmay be used, the Commission shall besubject to such directions as may from timeto time be issued in that behalf by theMinister.

42J. (1) Compensation shall be Compensation.

payable in respect of every estate land [§ 2, Law 39 of

vested in the Commission under this Part of 1975.]this Law.

XI/381


(2) The amount of compensation to bepaid in respect of any estate land vested inthe Commission shall be such sum as in theopinion of the Chief Valuer constitutes areasonable value of such estate land as onthe date of vesting. In determining theamount of compensation, the Chief Valuershall take into consideration, inter alia. thecondition of the estate land as on the date ofvesting, the dividends and profits declaredby the owner thereof in each of the fiveaccounting years immediately preceding thedate of vesting and the prices at which estatelands in the area in which such estate land issituated were sold during the period of threeyears immediately preceding the date ofvesting.

(3) The manner and mode of paymentof compensation shall be determined by theMinister in consultation with the Ministeror Ministers in charge of the subjects ofFinance, Planning and Economic Affairs.

(4) The compensation payable, less anydeductions that may be made from suchcompensation under this Part of this Law,shall carry interest, as from the date onwhich it accrues due until payment, at suchrate as may be determined by the Ministerwith the concurrence of the Minister orMinisters in charge of the subjects ofFinance, Planning and Economic Affairs.

(5) The provisions of sections 29 to 40(both inclusive) shall, mutatis mutandis,apply in respect of estate lands vested in theCommission under this Part of this Law.

(6) Where a person is entitled tocompensation in respect of any estate landvested in the Commission, the Commissionshall, after reasonable notice to such person,pay from the amount of suchcompensation-

(a) to the Commissioner-General ofInland Revenue, any sum certifiedunder the hand of theCommissioner-General of InlandRevenue to the Commission to bedue from such person under theInland Revenue Act, No.4 of 1963,or the Inland Revenue Act (No. 28of 1979); and

(b) to the Commissioner of Labour, anysum certified, within a period ofone year from the date of vesting ofsuch estate land, under the hand ofthe Commissioner of Labour to the .Commission to be due from suchperson as arrears of salary,provident fund contributions,gratuity or other monetary benefitto any person employed in suchestate land.

For the purposes of this subsection, theexpression .. compensation" includes anyinterest which has accrued due on suchcompensation.

(7) Notwithstanding the provisions ofsubsections (I) to (5) (both inclusive) of thissection, the Commission may pay to anyperson entitled to compensation in respectof any estate land vested in the Commissionunder this Part of this Law, such amountand in such manner or mode as the Ministermay, in consultation with the Minister orMinisters in charge of the subjects ofFinance, Planning and Economic Affairs,direct the Commission to pay, pursuant toany agreement or negotiated settlementreached between the Minister and suchperson in respect of the amount ofcompensation for such estate land and themanner and mode of payment thereof.

(8) Where compensation has been paidin respect of any estate land in accordancewith the provisions of this section, nofurther claim against the Commission eitherby the person to whom such compensationwas paid or by any other person shall beallowed and no action shall be institutedagainst the Commission in any court inrespect of such further claim.

41K. Where the Minister in consultation Vestingof the

with the Minister in charge of the subject of busndincssalt

,

T d h M · . M' . . h u crt 1085ra e, t e mister or misters 10 c arge of agencyof the subjects of Finance, Planning and housesorEconomic Affairs, is of the opinion that it is organizations.

f h f .. ff [§2 Law 39 ofnecessary, or t e purpose 0 giving elect to 1975.]this Part of this Law, to vest in theGovernment, the business undertaking ofany agency house or organization which,under this Part of this Law, is the statutorytrustee of any estate land vested in theCommission, the Minister may request the

XI/382


Appointmentand removal ofdirectors ofagency housesandorganizations.[§ 2, Law 39 of1975.]

Minister in charge of the subject of Financeto vest such business undertaking in theGovernment under the provisions of theBusiness Undertakings (Acquisition) Act,and accordingly, the Minister in charge ofthe subject of Finance may by Order madeunder section 2 of that Act, vest suchbusiness undertaking in the Government.

42L. (I) Where the Minister is of theopinion that, for the good and propermanagement of any estate land vested in theCommission, it is necessary so to do, theMinister may by Order published in theGazette appoint any person as a director orother executive officer or remove fromoffice any director or other executive officerof the agency house or organization whichunder this Part of this Law is the statutorytrustee of such estate land.

(2) An Order made under subsection(1)-

PART IV

ESTABLISHMENT, CONSTITUTION, POWERS

AND FUNCTIONS OF THE LAND REFORM

COMMISSION

43. '(1) There shall be established aLand Reform Commission (in this Lawreferred to as .. the Commission ''), whichshall consist of the persons who are for thetime being members of the Commissionunder section 45.

(2) The Commission shall by the nameassigned to it by subsection (I) be a bodycorporate and shall have perpetualsuccession and a common seal and may sueand be sued in such name.

(3) The head office of the Commissionshall be in Colombo, or in such other placein Sri Lanka as may be determined by theCommission.

Establishmentof LandReformCommission.

shall have' effect from the date ofpublication of such Order in theGazette;

(0)

(b) shall be validnotwithstandingother law;

and effectualanything in any

44. The Commission shall have such Powers of the

powers as may be necessary or expedient to Commission.

achieve its objects and in particular it may-

(0) acquire, hold, take or give on leaseor hire, exchange, mortgage,pledge, sell or otherwise dipose of,any movable or immovableproperty;

Interpretation.[§ 2, Law 39 of1975.]

(c) shall not be questioned in any courtor tribunal on any groundwhatsoever;

and the person in respect of whom suchOrder is made shall be deemed to have beenappointed to or to have vacated his office,as the case may be, on the date ofpublication of such Order in the Gazette.

42M. In this Part of this Law, unless thecontext otherwise requires, .. estate land"means any land of which an extentexceeding fifty acres, is under cultivation intea, rubber, coconut or any otheragricultural crop, or is used for any purposeof husbandry, and includes unsold produceof that land and all buildings, fixtures,machinery, implements, vehicles and things,movable and immovable, and all otherassets belonging to the owner of such landand used for the purposes of such land.

(b) carry out investigations, surveys andrecord data concerning and relatingto any agricultural land and call forreturns in the prescribed formconcerning and relating toagricultural land ;

(c) conduct, assist and encourageresearch into all aspects of landtenure and reform;

(d) make charges for any servicerendered by the Commission 10

carrying out its business;

(e) establish and maintain branch officesfor the purposes of theCommission;

(j) call for and receive such documentsrelating to title, valuation, surveysand plans of agricultural land asmay be necessary for carrying outsuch objects;

XI/383


Constitutionof theCommission.

(g) delegate to any member, officer oremployee of the Commission or anypublic officer, or any employee of.aState Corporation or localauthority or to a District LandReform Authority or to anyAgricult ural Prod ucti vityCommittee established under anyLaw any of its powers andfunctions other than the power tomake rules under section 57;

(h) enter upon and inspect anyagricultural land;

(i) direct and decide all mattersconnected with the administrationof its affairs;

(j) enter into and perform, eitherdirectly or indirectly through anyofficer or agent of the Commission,all such contracts or agreements asmay be necessary for enabling it toachieve the objects of this Law andto exercise its powers under thisLaw;

(k) borrow money for the purposes ofits business;

(I) establish a provident fund andprovide welfare and recreationalfacilities, houses, hostels and otheraccommodation, for personsemployed by the Commission;

(m) do anything for the purpose ofadvancing the skill of personsemployed by the Commission andthe assistance of the provision byothers of facilities for trainingpersons required to carry out thework of the Commission.

45. (I) The Commission shall consistof the following members :-

(0) a Chairman appointed by theMinister;

(b) five other members appointed by theMinister-

(i) two of whom shall have hadwide experience or shown

capacity in the administrationof lands, land tenure or insurveying or law;

(ii) one of whom shall be a publicofficer nominatd by name orby office by the Minister incharge of the subject ofFinance;

(iii) one of whom shall be a publicofficer nominated by name orby office for suchappointment by the Ministerto whom the subject orfunction of PlantationIndustries is assigned by thePresident; and

(iv) one of whom shall be a publicofficer nominated by name orby office for suchappointment by the Ministerto whom the subject orfunction of Planning has beenassigned by the President;and

(c) three ex officio members who shallbe-

(i) the Land Commissioner;

(ii) the Commissioner of AgrarianServices; and

(iii) the Director of Agriculture.

(2) A member of the Commissionappointed by the Minister under subsection(I) is in this Law referred to as an.. appointed member ".

(3) A person shall be disqualified frombeing appointed, or from continuing, as anappointed member of the Commission, if heis or becomes a Member of Parliament.

(4) Every appointed member of theCommission-

(0) shall, unless he earlier vacates hisoffice by death or resignation orremoval, hold office for a period ofthree years from the date of hisappointment; and

XI/384


(b) shall be eligible for reappointment:

Provided that a member appointed by theMinister to fill a vacancy in the office of amember of the Commission, shall holdoffice for the unexpired portion of the termof office of the member whom he succeeds.

(5) All or any of the appointed membersof the Commission may be paid suchremuneration out of the fund of theCommission as may be determined by theMinister, with the concurrence of theMinister in charge of the subject of Finance.

(6) An appointed member of theCommission may be removed from office bythe Minister without assigning any reasons,so however, that no such member who wasnominated by a Minister under subsection(I) (b) (ii), (iii) and (iv) of section 45 forsuch appointment shall not be so removedwithout the prior concurrence of theMinister nominating such member.

(12) The quorum for a meeting of theCommission shall be three members of theCommission and, subject as aforesaid, theCommission may regulate its ownprocedure.

(13) The Commission may actnotwithstanding any vacancy among itsmembers or any defect in the appointmentof any member.

46. (I) The seal of the Commission Seal of the

shall be in the custody of the Commission. Commission.

(2) The seal of the Commission may bealtered in such manner as m a v bedetermined by the Commission.

(3) The seal of the Commission shall notbe affixed to any instrument or documentexcept in the presence of two members ofthe Commission both of whom shall signthe instrument in token of their presence.

(7) The removal of any member of theCommission under subsection (6) shall notbe called in question in any court, whetherby way of writ or otherwise.

(8) Any appointed member of theCommission may resign his office by letteraddressed to the Minister.

(9) Where any appointed member of theCommission becomes, by reason of illnessor other infirmity or absence from SriLanka, temporarily unable to perform theduties of his office, the Minister may,having regard to the provisions ofsubsection (1), appoint a fit and properperson to act in place of that member.

(10) If the Chairman of the Commissionbecoines, by reason of illness or otherinfirmity or absence from Sri Lanka,temporarily unable to perform the duties ofhis office, the Minister may appoint a fitand proper person to act in place of suchChairman.

(11) The Chairman of the Commissionmay resign the office of such Chairman byletter addressed to the Minister.

47. (1) The Minister may give suchgeneral or special directions in. writing as tothe performance of the duties and theexercise of the powers of the Commission,and such Commission shall give effect tosuch directions.

(2) The Minister may, from time totime, direct the Commission in writing tofurnish him in such form as he may require,returns, accounts and other informationwith respect to the property and business ofthe Commission and the Commission shallcarry out every such direction.

(3) The Minister may order all or any ofthe activities of the Commission to beinvestigated and reported upon by suchperson or persons as he may specify andupon· such order being made, theCommission shall afford all such facilitiesand furnish all such information as may benecessary to carry out such order.

48. All officers and servants of theCommission shall be deemed to be publicservants within the meaning and for thepurposes of the Penal Code.

Powers of theMinister inrelation to theCommission.

Officers andservants of theCommissiondeemed to bepublic servants.

XI/385


Commissiondeemed to be ascheduledinstitutionwithin themeaning of theBribery Act.

District LandReformAuthorities.

Appointmentof officers andservants.

Powers of theCommission inregard to thestaff of theCommission.

49. The Commission shall be deemed tobe a scheduled institution within themeaning of the Bribery Act, and theprovisions of that Act shall be construedaccordingly.

50. (I) The Commission shall appointa District Land Reform Authority' for eachadministrative district consisting of suchnumber of members as the Commission maydetermine.

(2) A District Land Reform Authorityshall exercise, discharge or perform anysuch powers, functions or duties of theCommission as may be delegated to suchAuthority by the Commission.

(3) The members of a District LandReform Authority may be paid suchremuneration as the Minister may, inconsultation with the Minister in charge ofthe subject of Finance, determine.

PART V

STAFF OF THE COMMISSION

51. (I) The Commission may appointa Secretary and such other officers, servantsand agents as it considers necessary for theefficient discharge of its functions.

(2) The Secretary and other officers,servants and agents of the Commission shallbe remunerated in such manner and at suchrates, and shall be subject to such conditionsof service, as may be determined by theCommission.

52. (I) The Commission may makerules in respect of all or any of the followingmatters :-

(a) the appointment, promotion,dismissal and disciplinary control ofthe staff of the Commission;

(b) the fixing of wages or salaries, orother remuneration, of such staff;

(c) the terms and conditions of serviceof such staff; and

(~ the administration of the affairs ofthe Commission.

• Repealed by Law No. 19 of 1978.

(2) At the request of the Commission,any officer in the public service may, withthe consent of that officer and the Secretaryto the Ministry charged with the subject ofPublic Administration, be temporarilyappointed to the staff of the Commissionfor such period as may be determined by theCommission with like consent or bepermanently appointed to such staff. Whereany officer in the public service istemporarily appointed to the staff of theCommission, subsection (2) of section 9 ofthe Motor Transport Act, No. 48 of 1957·,shall mutatis mutandis apply to and inrelation to him.

(3) Where any officer in the publicservice is permanently appointed to the staffof the Commission, subsection (3) .of section9 of the Motor Transport Act, No. 48 of1957*, shall mutatis mutandis apply to andin relation to him.

(4) Where the Commission employs anyperson who has entered into a contract withthe Government for a specified period, anyperiod of service to the Commission by thatperson shall be regarded as service to theGovernment for the purpose of dischargingthe obligations of such contract.

(5) At the request of the Commission,any officer or servant of the LocalGovernment Service or of any localauthority may, with the consent of thatofficer or servant and the LocalGovernment Service Advisory Board or thatauthority, as the case may be, betemporarily appointed to the staff of theCommission for such period as may bedetermined by the Commission with likeconsent, or be permanently appointed tosuch staff on such terms and conditions,including those relating to pension orprovident fund rights, as may be agreedupon by the Commission and the LocalGovernment Service Advisory Board or thatauthority.

(6) Where any person is temporarilyappointed to the staff of the Commission inpursuance of the provisions of subsection(5) he shall be subject to the samedisciplinary control as any other member ofsuch staff.

XI/386

LAND REFORM

PART VI PART VII

[Cap. 297

(b) which are required by this Law to beprescribed.

57. (I) The Commission may make Rules.rules in respect of all or any matters-

(0) for which rules are required orauthorized by this Law to be made;and

Capital oftheCommission.

Fund oftheCommission.

Financial yearoftheCommission.

Application ofprovisions ofthe Public'Corporations(FinancialControl) Act.

FINANCE AND ACCOUNTS OF THECOMMISSION

53. (I) The initial capital of theCommission shall be ten million rupees.

(2) The amount of the initial capital ofthe Commission shall be paid to theCommission out of the Consolidated Fundin such instalments as the Minister in chargeof the subject of Finance may inconsultation with the Minister determine.

(3) The capital of. the Commission maybe increased from time to time by aresolution of Parliament.

54. (I) The Commission shall have itsown fund.

(2) There shall be paid into the fund ofthe Commission-

(a) all such amounts as may be votedfrom time to time by Parliament forthe use of the Commission; and

(b) all such sums of money received bythe Commission in the exercise,discharge and performance of itspowers and duties.

(3) There shall be paid out of the fundof the Commission all such sums of moneyrequired to defray the expenses incurred bythe Commission in the exercise, dischargeand performance of its functions, powersand duties under this Law or any otherwritten law and all such sums of money asare required to be paid out of the fund by orunder this Law.

55. The financial year of theCommission shall be the period of twelvemonths commencing on the first day ofJanuary each year.

56. The provisions of the PublicCorporations (Financial Control) Act shallmutatis mutandis apply to the financialcontrol and accounts of the Commission.

GENERAL

(2) No rule made by the Commissionshall have effect until it is approved by theMinister.

58. (I) No suit or prosecution shalllie-

(0) against the Commission for any actwhich in good faith is done orpurported to be done by theCommission under this Law; or

(b) against any member, officer, servantor agent of the Commission for anyact which in good faith is done orpurported to be done by him underthis Law or on the direction of theCommission.

(2) Any expenses incurred by suchperson as is referred to in subsection (I) inany suit or prosecution brought against himbefore any court in respect of any act whichis done by him under this Law or on thedirection of the. Commission shall, if thecourt holds that the act was done in goodfaith, be paid out of the fund of theCommission.

59. No writ against person or propertyshall be issued against a member of theCommission in any action brought againstthe Commission.

60. Any company or body of persons(whether corporate or unincorporate) may,notwithstanding anything to the contrary inany other written law or instrument relatingto its functions, enter into and perform allsuch contracts with the Commission as maybe necessary for the exercise, discharge orperformance of the powers, functions orduties of the Commission.

Protection foraction takenunder this Lawor on thedirection of theCommission.

No writ toissue againstperson orproperty of amember of theCommission.

Power ofcompanies toenter intocontracts withtheCommission.

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Officers ofDepartment ofInlandRevenue maydisclose anyparticulars totheCommission.

Regulations.

61. Notwithstanding anything containedin section 124 of the Inland Revenue Act,No.4 of 1963, or section 158 of the InlandRevenue Act (No. 28 of 1979), any officer ofthe Department of Inland Revenue shall, atthe request of the Commission, disclose tothe Commission such particulrs relating tothe affairs of any person that may come tohis knowledge in the performance of hisduties under that Act as may be required bythe Commission for the exercise of itspowers and discharge of its functions underthis Law.

62. (1) The Minister may makeregulations for the purpose of carrying outor giving effect to the principles andprovisions of this Law.

(2) In particular and without prejudiceto the generality of the powers conferred bysubsection (I) the Minister may makeregulations in respect of the followingmatters :-

(a) any matter required by this Law tobe prescribed;

(b) the furnishing of returns, data andstatistics relating to agriculturalland;

(c) the appointment of District andLand Reform Authorities and theterms and conditions of suchappointments;

(d) the compiling of registers of personswho do not own any agriculturalland and are unemployed and whodesire to-

(i) purchase land from theCommission in individualallotments for agricultural oranimal husbandry purposes;

(ii) be members of groups towhom land may be alienatedon a co-operative basis foragriculture or animalhusbandry ;

(iii) be workers on farms orplantations managed by theCommission; and

(iv) purchase land for theconstruction of residentialhouses.

(3) Every regulation made by theMinister shall be published in the Gazetteand shall come into operation on the date ofsuch publication or on such later date asmay be specified in the regulation.

(4) Every regulation shall, as soon asconvenient after its publication in theGazette, be. brought before Parliament forapproval. Any regulation which is not soapproved shall be deemed to be rescindedfrom the date of its disapproval but withoutprejudice to anything previously donethereunder. Notification of the date of theregulation to be rescinded shall be publishedin the Gazette.

63. (1) Every person who- Offences.

(a) neglects or fails to comply with anyprovision of this Law or anyregulation or order madethereunder shall be guilty of anoffence under this Law;

(b) aids or abets any person or personsin the commission of an offenceunder this Law shall be guilty of anoffence under this Law;

(c) attempts to commit any offenceunder this Law, shall be guilty of anoffence under this Law.

(2) Every person who commits anoffence under this Law shall, on convictionafter summary trial before a Magistrate, beliable to imprisonment of either descriptionfor a period not exceeding one year or to afine not exceeding one thousand rupees orto both such imprisonment and fine.

(3) Where any offence under this Law iscommitted by a body corporate everyindividual who at the time of thecommission of the offence was a director,general manager, secretary or other similarofficer of the body corporate shall be deemedto be guilty of that offence unless he provesthat the offence was committed without hisconsent or connivance and that he exercisedall due diligence to prevent the commission of

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The provisionsof this Law toprevail overother law,custom orusage.

The provisionsof this Lawrelating toceiling not toapply tocertainGovernmentInstitutions.

Interpretation.

that offence as he ought to have exercised inthe circumstances having regard to thenature of the offence,

64. The provisions of this Law shallhave effect notwithstanding anything to thecontrary in the Tea and Rubber Estates(Control of Fragmentation) Act, the Estates(Control of Transfer and Acquisition) Act,No.2 of 1972*, or in any other law, customor usage.

65. The provisions of this Law relatingto the ceiling on agricultural land shall notapply to-

(1) any State Corporation; and

(2) any Government sponsored Cooperative Society, and the otherprovisions of this law shall be readand construed accordingly.

66. In this Law, unless the contextotherwise requires :-

.. agriculture" includes-

(i) the growing of rice, all fieldcrops, spices and condiments,industrial crops, vegetables,fruits, flowers, pasture andfodder;

(ii) dairy farming, livestock-rearing and breeding;

(iii) plant and fruit nurseries;

.. agricultural land" means land used orcapable of being used foragriculture within the meaninggiven in this Law and shall includeprivate lands, lands alienated underthe Land Development Ordinanceor the State Lands Ordinance orany other enactment and includesalso things attached to the earth orpermanently fastened to anythingattached to the earth but shallexclude-

(a) any cultivated agricultural landowned or possessed by a public

company on May 29, 1971, so longand so long only as such landcontinues to be so owned orpossessed by such company;

(b) any such land which was viharagamor devalagam land on May 29,1971, so long and so long only assuch land continues to be so ownedor possessed;

(c) any such land which was owned orpossessed by a religious institutionon May 29, 1971, so long and solong only as such land continues tobe so owned or possessed by suchreligious institution;

(d) any such land which on May 29,1971, constituted a charitable trustas defined in the Trusts Ordinanceor a Muslim charitable trust orwakf as defined in the MuslimMosques and Charitable Trusts orWakfs Act, so long and so longonly as such land continues to be soowned or possessed as such trust;

(e) any such land held in trust on May29, 1971, under the BuddhistTemporalities Ordinance so longand so long only as such land isheld in trust under that Ordinance;

.. alienation" with its grammaticalvariations and cognate expressions,means any transaction of whatevernature affecting land or the titlethereto, and includes anyconveyance, transfer, grant,surrender, exchange, lease,mortgage of land or the creation ofa trust or fidei commissum attachedto land;

.. co-operative society" means a cocietyregistered under the Co-operativeSocieties Law;

.. date of commencement of this Law"means the 26th day of August,1972;

.. local authority" includes any MunicipalCouncil, Urban Council, TownCouncil or Village Council;

• See the List of Enactments omitted from the Revised Edition.

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.. paddy land" has the same meaning as inthe Paddy Lands Act, No. I of1958· ;

.. person" means-

(a) a family-

(i) consisting of the survivingspouses or spouse and anysurviving child or childrenunder the age of eighteenyears; or

(ii) if there are no survivingspouses, any surviving childor children under the age ofeighteen years; or

(b) any individual who is eighteen yearsof age or over; or .

(c) any other person within the meaningof the Interpretation Ordinance notbeing any such family orindividual ;

.. private company" means a privatecompany within the meaning of theCompanies Ordinance]":

.. public company" means-

(i) a company registered under theCompanies Ordinance] otherthan a private company; or

(ii) any company to which Part XIof the. Companies Ordinance]applies;

.. State Corporation" means anyCorporation, Board or other bodywhich was or is established by orunder any written law, other thanthe Companies Ordinancet, withcapital wholly or partly provided bythe Government by way of grant,loan or other form ;

.. statutory lease ", in relation to anyagricultural land, means a lease ofany such land deemed to have beengranted by the Commission, underthis Law;

.. tenant cultivator" has the same meaningas in the Paddy Lands Act, No. I of1958·.

• Repealed by the Apicultural LaDds Law, No. 42 of 1973, itself repealed by the Agrarian Services Act(No. 58 of 1979).

tRepcalcd and replaced by the Companies Act, No. 17 of 1982.

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CHAPTER 297 LAND REFORMextwprlegs1.fao.org/docs/pdf/srl13619.pdfCap. 297] Laws Nos. I of 1972. 39 of 1975. LAND REFORM CHAPTER 297 LAND REFORM A LAW TO ESTABLISH A LAND REFORM COMMISSION

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