Himikama program will grant freehold land deeds to thousands of permit holders across Sri Lanka, marking a major shift in land ownership policy. The initiative aims to remove structural barriers that have constrained land development and access to credit.
Himikama program enables permit holders to secure full land ownership rights in Sri Lanka
Sri Lanka’s government has announced that it will provide freehold title deeds to individuals currently holding land permits under the new Himikama program. The reform is intended to transition permit-based land tenure into outright ownership, addressing longstanding constraints embedded in the country’s land administration framework.
State Minister for Land and Irrigation Aravinda Senerath Vitharana stated that the absence of freehold ownership has historically limited land development and economic growth. According to the minister, delayed conversion of permits into transferable titles has created structural inefficiencies that affect both rural productivity and broader macroeconomic performance.
Sri Lanka’s land tenure system has roots in the Land Development Ordinance enacted in 1935. Under this framework, land distributed to settlers was typically subject to restrictive transfer conditions. In many cases, land could only be passed to blood relatives or individuals classified within the “farming class.” While originally designed to protect agricultural continuity, these limitations have generated long-term market distortions.
Chandana Ranaweera Arachchi, the Land Commissioner General, noted that such colonial-era provisions have prevented efficient land transactions. Permit holders, lacking full ownership rights, are unable to mortgage their land as collateral for bank loans. This restriction has constrained capital formation, particularly in agriculture and peri-urban development zones where land values have appreciated significantly.
From an economic standpoint, the inability to leverage land assets reduces productive investment. Land, in theory, functions as both a factor of production and a financial instrument. Without formal title, its liquidity and collateral value remain suppressed. By converting permits into freehold deeds, the Himikama program effectively formalizes property rights, unlocking access to credit markets.
Officials report that 76,000 applications have already been received under the initiative. During the first phase, authorities aim to distribute 40,000 deeds. If implemented efficiently, the scale of this transition could have measurable implications for rural credit expansion, agricultural modernization, and household wealth stabilization.
The Himikama program builds upon earlier land reform efforts. In 2024, former President Ranil Wickremesinghe initiated the Urumaya program, which began distributing freehold titles to farmers. The current administration’s approach appears to extend and institutionalize that process on a broader scale.
The shift from permit-based tenure to freehold ownership also alters incentive structures. When landholders possess full, legally recognized title, their investment horizon typically lengthens. Ownership security encourages improvements such as irrigation systems, mechanization, soil enhancement, and construction of permanent structures. In urban or semi-urban settings, it may stimulate formal property development and increase compliance with municipal planning regulations.
However, policymakers must also account for potential second-order effects. Full marketability of land could accelerate fragmentation or speculative transfers if regulatory oversight is weak. Safeguards may be necessary to prevent distress sales or concentration of land ownership in financially dominant groups. The balance between market liberalization and social protection will determine the long-term equity outcomes of the reform.
From a fiscal perspective, formalization of land titles can expand the taxable property base. Once land parcels are fully documented and registered, valuation systems become more transparent, potentially improving local government revenue collection. This could enhance public service delivery at the provincial and municipal levels.
The Himikama program therefore represents more than an administrative adjustment; it is a structural recalibration of land rights architecture. By resolving tenure insecurity, the government aims to reduce systemic inefficiencies that have constrained economic mobility for decades.
Implementation capacity will be critical. Converting tens of thousands of permits into legally defensible freehold deeds requires coordinated action across land registries, survey departments, and local administrative offices. Delays or bureaucratic bottlenecks could dilute public confidence in the reform.
If executed effectively, the Himikama program may strengthen asset ownership among rural households, improve access to formal finance, and stimulate productive land use. The initiative signals a strategic recognition that property rights reform is foundational to long-term economic development in Sri Lanka.