Millions saved by cost-cutting:

UDA on way to recovery

*Billions worth rentals not paid

*UDA Act to be amended

Chamikara WEERASINGHE

The Urban Development Authority (UDA) running at a loss of over Rs 2,500 million is on the path of recovery after Defence Secretary Gotabhaya Rajapaksa’s decision to rapidly collect its overdue rentals and project payments from its clients.

Meanwhile, the Authority has appointed a Committee on the Defence Secretary’s directions to draft proposals to amend the UDA Act No 41 of 1978 to remove difficulties faced by it in acquiring its rentals and payments.

The Committee will also focus on restructuring some provisions in the Act to enable the UDA to directly intervene in the removal of unauthorized structures to cut down excessive expenditure that UDA spends to get Court approval to remove them, UDA sources said.

The Committee will draft proposals to improve the process of accumulation of funds to the UDA.

UDA Enforcement Director WA Siriwardena said rentals overdue to the UDA from facilities maintained by it amounts to billions of rupees.

“They are now being acquired by the UDA. The Authority has saved several millions by cutting down its transport costs, overtime and other payments,” he said.

The facilities maintained by the UDA at People’s Park and St John’s Fish Market in Pettah, Colombo Central Super Market Complex and Chalmers Granaries in Colombo are due to pay about Rs 1,000 million.

Some have not paid their electricity bills for years.

The UDA is paying them, Siriwardena said. The UDA is to collect overdue payments from Ackland House, Borella shops, Elphinstone Theatre, Houses at Thelwala Road, Avissawella Wholesale Complex, Orugodawatta Food Stores, Liberty Plaza , Pelawatta Gramodaya Centre, Peliyagoda Warehous Complex, The Parliament and Sethsiripaya buildings.

The outstanding sum from these establishments run to about another Rs1,000 million, sources said. Speaking on the UDA Act of 1978 , Siriwardena said the UDA while having to provide its services do not get any funds remitted to it because of several obstructions in the Act.

The collection of its funds goes to the Urban Housing Development Authority, he said.

Asked if they were complacent about their services in removing unauthorized structures in the city, he said UDA officials had said they have not opened even 10 percent of their files relating to unauthorized structures.

”It has been a costly exercise to remove them. The UDA had to spend at least Rs100,000 on each law suit it files against unauthorized structures,“ he said. There are thousands of unauthorized structures in the city, most of them contributing to environmental pollution by blocking rain water and sewerage canals.

The UDA cannot directly engage in removing them under the present Act. A UDA director said , “ When we get a Court approval to remove some unauthorized structures we find that they have appealed against it.”

The UDA Act is being amended to repeal these deficiencies, he said.