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Permit Land Sri Lanka: What You May Sell, Gift or Nominate

Hold an LDO permit or a Swarnabhoomi, Jayabhoomi, Rathnabhoomi or Ranbima grant? Pick what you want to do — sell, gift a portion, mortgage, lease, nominate a successor — and this tells you whether it is lawful, void, or lawful only with prior written approval, quoting the section that decides it. It also works out who inherits under the Third Schedule as replaced in 2022.

By Induwara AshinsanaUpdated Sep 27, 2026
Check what you may lawfully dopermit · grant · succession
Section-cited · 2026-09-27

Statutory information, not legal advice. This page reads the published Land Development Ordinance and quotes the section that decides each answer. The Divisional Secretariat holding your file decides in fact, and a provincial land statute may add conditions.

A temporary right to occupy and develop State land, signed by the Divisional Secretary. Ownership stays with the State until a grant issues.

Every branch returns the section that decides it, quoted rather than paraphrased.

Administrative practice asks the transferee to be a blood relative of the grantee or to fall in the same income category.

Try a case
Prohibited — null and void

Null and void — whatever the parties agree

Permit land is not yours to dispose of. Section 46(1) bars a permit-holder from executing or effecting ANY disposition of the land, and s. 46(3) makes anything outside the one s. 46(2) exception null and void. “Disposition” is defined in s. 2 to include a conveyance, devise, donation, exchange, lease, mortgage or transfer, so a sale, a gift, a lease and a bank mortgage are all caught. No approval cures it, because nobody has the power to approve it.

The rule that decided it

  • s. 46— Land Development Ordinance (Cap. 464)

    (1) Subject to the provisions of subsection (2), no permit-holder shall execute or effect any disposition of the land alienated to him on the permit. (2) With the written consent of the Government Agent, a permit-holder may mortgage his interest in the land alienated to him on the permit to any registered society of which he is a member. (3) Any disposition, other than a disposition in accordance with the provisions of subsection (2), of any land alienated on a permit shall be null and void.

  • s. 2— Land Development Ordinance (Cap. 464)

    'minimum fraction' means the smallest fraction of a holding which can lawfully be held in undivided ownership; ... 'unit of subdivision' means the minimum extent of land below which a holding cannot lawfully be subdivided.

The lawful routes instead

  • Mortgage your interest in the permit land to a registered society you are a member of, with the written consent of the Government Agent — s. 46(2). That is the only disposition a permit-holder may make.
  • Take the land to a grant first: pay every instalment under s. 19(2), comply with the Schedule to the permit, and occupy and fully develop the land for 1 year — s. 19(4). Once the President signs the grant, a transfer becomes possible with the prior approval of the Divisional Secretary under s. 19(6)(b).
  • Nominate a successor instead, if the point is to make sure the right person gets the land — a nomination is not a disposition (s. 55) and a permit-holder may make one (s. 51).

Worth knowing

  • A deed signed before a notary does not change this. The Ministry of Justice's own handbook puts it plainly: permits are not transferable, but can be transmitted by inheritance.
  • Money already paid under a void transfer is a matter between you and the other party — the Ordinance does not validate the transfer because the price was paid.
  • This is a reading of the published Ordinance, not legal advice. The Divisional Secretariat holding your file decides, and a provincial land statute may add conditions on top of the Ordinance.

Sources cited

Land Development Ordinance (Cap. 464) ss. 2, 19, 28, 30, 39–43, 46, 48A–49, 51–60, 68, 72–73, 87, 104 and 170 · Land Development (Amendment) Act, No. 11 of 2022 (certified 19 March 2022) · Land Commissioner General's Department FAQ · Ministry of Justice handbook on land and property. Verified 2026-09-27.

How it works

State land in Sri Lanka is alienated in two stages, and almost every question about it turns on which stage you are at. Section 19(2) of the Land Development Ordinance says every person to whom State land is alienated “shall in the first instance receive a permit authorizing him to occupy the land”. The purchase amount, fixed by the Commissioner-General of Lands, is paid in annual instalments over 10 years with interest not exceeding 4% a year on the outstanding balance. Registration of the permit itself carries no fee (s. 19(3)).

At the permit stage the answer to almost every question is no. Section 46(1) bars a permit-holder from executing or effecting anydisposition of the land, and “disposition” is defined in s. 2 to include any conveyance, devise, donation, exchange, lease, mortgage or transfer. The single exception is s. 46(2) — a mortgage of the holder’s interest to a registered society he is a member of, with the Government Agent’s written consent. Section 46(3) makes everything else null and void, so the tool returns a prohibition and shows the lawful route rather than a dead end.

The route out is s. 19(4), which issues the grant on three conditions together: every sum under s. 19(2) paid, every other condition in the Schedule to the permit complied with, and occupation with full development to the Government Agent’s satisfaction for 3 years on irrigated land or 1year on high land. The Commissioner-General may issue it earlier where waiting would adversely affect development. Two conditions added in 2022 also apply: unsurveyed State land cannot be alienated by grant at all (s. 28), and a Surveyor-General’s plan must be attached to every grant (s. 30).

Once the President signs the grant — Swarnabhoomi, Jayabhoomi, Rathnabhoomi or Ranbima are all names for it — s. 42 lets the owner dispose of the holding except where the Ordinance prohibits it, and makes a contravening disposition null and void. Section 19(6) writes two conditions into every grant: no disposing of a divided portion or undivided share smaller than the unit of subdivision or minimum fraction specified in the grant, and no disposing of the holding except with the prior approval of the Government Agent. The tool runs the first as arithmetic on your own figures, testing the portion going out and the remainder left behind, and treats equality with the floor as a pass — the section bars only a portion less in extent than it.

Leasing is barred except in prescribed circumstances, and mortgaging is barred to anyone other than the institutions s. 43(b) lists. Here the 2022 Act made a real difference: s. 19(7)removes the Divisional Secretary’s approval for a mortgage to any of those institutions, so a bank mortgage that used to need approval now needs none. The trade is s. 41A, which lets exactly those lenders seize and sell the land to enforce the mortgage despite the ss. 39–40 protection against seizure under a court decree.

Succession runs through Chapter VII and nothing else: s. 170(1) excludes every other law of intestate succession, and s. 170(2) lets a last will pass title only as a Chapter VII nomination. A surviving spouse succeeds first (ss. 48A, 48B) but, unless the spouse was the nominated successor, with no power to dispose and no power to nominate; the interest ends on the spouse’s marriage or death. Then the validly nominated successor takes (s. 49) — valid meaning registered before the death (s. 60) and within s. 51. Failing that, s. 72 hands it to rule 1 of the Third Schedule, and the tool walks the six groups in order, applies rule 2 to pass over anyone unwilling, then rule 1(d) before rule 1(b), because the relative who developed the land takes instead of the older relative.

What changed on 25 March 2022

The rules on this page are the ones the Land Development (Amendment) Act, No. 11 of 2022 left behind. It was certified on March 19, 2022 and published as a Supplement to Part II of the Gazette of March 25, 2022.

Before 25 March 2022 the Third Schedule ranked relatives by sex as well as group — sons ahead of daughters, and the eldest son ahead of his brothers. Section 10 of Act No. 11 of 2022 repealed that Schedule outright and substituted the one above, in which sex is irrelevant, age decides within a group, and the relative who developed the land outranks the older relative.

  • s. 19(7), new. No Divisional Secretary approval to mortgage a holding to a listed institution.
  • s. 28, new. Unsurveyed State land cannot be alienated by a grant.
  • s. 30, replaced.A Surveyor-General’s plan must be attached to every grant.
  • ss. 104 and 104A–104D. A grant obtained fraudulently on false information, or issued to someone other than the legitimate occupant, can be cancelled — after notice by registered post, a copy affixed on the land, and at least thirty days to show cause.
  • Third Schedule, substituted in full. The order of succession below.
  • Everywhere.“Land Commissioner” became “Commissioner-General of Lands”.

The Third Schedule, in full

The exact words decide who inherits, so they are reproduced here rather than paraphrased, from the official Act text.

Rule 1(a). The group of relatives from which a successor may be nominated for the purposes of section 51 shall be as set out in the subjoined table.

Rule 1(b). The title of a holding or the land for the purposes of section 72, shall devolve on one only of the group of relatives of the permit holder or owner in the order of priority in which they are respectively mentioned in the subjoined table. The older being preferred to the younger where there are more relatives than one in any group.

Rule 1(c). Where in any group of relatives mentioned in the subjoined table there are two or more persons of the same age equally entitled and willing to succeed to the title to the holding or the land, the title to the holding or the land shall devolve on such persons as may be determined by the Divisional Secretary of the relevant Divisional Secretary's Division where the land is situated.

Rule 1(d)(i). Notwithstanding the provisions of paragraphs (b) and (c) above — where any person in the order of priority in which they are respectively mentioned in the subjoined table developed such land, the title to the holding or the land shall not devolve on the older person referred to in paragraph (b) but on the person who developed such land.

Rule 1(d)(ii). Where there are two or more persons in the order of priority in which they are respectively mentioned in the subjoined table developed the land, the title to the holding or the land shall devolve on such persons who developed such land.

Rule 2. If any relative on whom the title to a holding or land devolves under the provisions of these rules is unwilling to succeed to such holding or land, the title thereto shall devolve upon the relative who is next entitled to succeed subject to the provisions of rule 1.

Rule 3. The Divisional Secretary shall, on being satisfied of the material facts before him and for reasons specified by him, determine such person or persons referred to in rule 1 according to the by laws, rules and regulations pertaining to the unit of subdivision or the minimum fraction specified by the relevant local authority, the provisions of the Agrarian Development Act, No. 46 of 2000 and the Irrigation Ordinance (Chapter 453).

Definitions. “Children” includes a child adopted according to law; and “relative” means a relative by blood or adoption according to law and shall not include a relative by marriage.

And the table those rules refer to, in its own order:

OrderGroupWho takes within the group
(i)ChildrenWhoever developed the land; otherwise the older, and the Divisional Secretary where two of the same age are equally entitled and willing
(ii)Grand ChildrenWhoever developed the land; otherwise the older, and the Divisional Secretary where two of the same age are equally entitled and willing
(iii)ParentsWhoever developed the land; otherwise the older, and the Divisional Secretary where two of the same age are equally entitled and willing
(iv)SiblingsWhoever developed the land; otherwise the older, and the Divisional Secretary where two of the same age are equally entitled and willing
(v)Uncles and AuntsWhoever developed the land; otherwise the older, and the Divisional Secretary where two of the same age are equally entitled and willing
(vi)Nephews and NiecesWhoever developed the land; otherwise the older, and the Divisional Secretary where two of the same age are equally entitled and willing

Source: Third Schedule to the Land Development Ordinance as substituted by s. 10 of Act No. 11 of 2022. Only one group ever takes — reaching group (ii) means nobody in group (i) is entitled and willing.

Worked examples

A permit holder wants to sell half

LDO annual permit · 60 perches of high land · 4 of 10 instalments paid · 30 perches to an unrelated neighbour

  1. Document = permit, so s. 46(1) bars ANY disposition of the land.
  2. The action is not the s. 46(2) exception (a mortgage to his own registered society).
  3. s. 46(3): any disposition outside s. 46(2) is null and void.
  4. Verdict: prohibited. No approval cures it — nobody has power to approve it.
  5. Route instead: instalments outstanding 10 − 4 = 6; pay them, comply with the permit Schedule,
  6. and complete 1 year of occupation and full development (high land, not the 3 years for irrigated).
  7. Then s. 19(4) issues the grant, and a transfer becomes possible under s. 19(6)(b).

A grant owner gifting a divided portion to his daughter

Swarnabhoomi grant · holding 80 perches · minimum fraction on the grant 40 perches · gift of 20 perches

  1. s. 19(6)(a): the portion disposed of must not be less in extent than the floor.
  2. Portion test: 20 ≥ 40 → FAIL.
  3. Remainder test: 80 − 20 = 60 ≥ 40 → pass. The portion is what fails, not the remainder.
  4. Verdict at 20 perches: prohibited, and s. 42 makes it null and void.
  5. At 40 perches: portion 40 ≥ 40 → pass; remainder 80 − 40 = 40 ≥ 40 → pass.
  6. Equal to the floor is not 'less in extent than' it, so both sides clear.
  7. Verdict at 40 perches: allowed only with the prior approval of the Divisional Secretary, s. 19(6)(b).
  8. A daughter also satisfies the practice condition that the transferee be a blood relative.

Nobody was nominated (the edge case the web gets wrong)

Jayabhoomi holder dies 2026 · no nomination ever registered · wife surviving, not remarried · children 46, 41 and 33 · the 33-year-old built the house and farmed the land for 11 years

  1. s. 48B(1): the wife succeeds — but (b) no power to dispose, (c) no power to nominate.
  2. s. 48B(1)(a): on her marriage, title devolves under rule 1 of the Third Schedule.
  3. s. 72: on her death, the same rule 1 applies.
  4. Rule 1(b): groups scanned in order; the first with a willing relative is (i) Children.
  5. Rule 1(b) alone would give it to the 46-year-old.
  6. Rule 1(d)(i): the relative who developed the land takes INSTEAD of the older relative.
  7. Result: the 33-year-old child takes, alone. Sex is irrelevant at every step.
  8. Under the Schedule repealed in 2022 this would have gone to the eldest son.

Mortgaging a grant to Bank of Ceylon

Ranbima grant · mortgage to a licensed commercial bank

  1. s. 43(b): a mortgage to a licensed commercial bank is permitted → passes.
  2. s. 19(6)(b) would demand prior approval of the Government Agent.
  3. s. 19(7), inserted by s. 4 of Act No. 11 of 2022: that approval is NOT required
  4. when mortgaging to exactly these institutions.
  5. Verdict: allowed, with no approval step. The same mortgage before 25 March 2022 needed one.
  6. Warning attached: s. 41A lets the bank seize and sell on default, despite ss. 39–40.

Permit against grant, side by side

What you want to doOn an annual permitOn a grant
Sell or transfer the whole holdingVoid — s. 46(1), (3)Prior approval of the Divisional Secretary — s. 19(6)(b)
Gift a divided portionVoid — s. 46(1), (3)Only above the minimum fraction, then prior approval — s. 19(6)
Mortgage to a bankVoid — a bank is not the s. 46(2) exceptionAllowed, no approval since 2022 — ss. 43(b), 19(7)
Mortgage to your own registered societyAllowed with the Government Agent's written consent — s. 46(2)Allowed, no approval — ss. 43(b), 19(7)
Lease it outVoid — s. 46(1), (3)Barred except in prescribed circumstances — s. 43(a)
Nominate a successorAllowed — ss. 51, 55, 87; register before death (s. 60)Allowed — ss. 51, 55; register before death (s. 60)
Seizure under a court decreeProtected — ss. 39, 40Protected, except a mortgagee enforcing — s. 41A

The institutions ss. 43(b) and 19(7) name: a licensed commercial bank, the State Mortgage and Investment Bank, the Development Finance Corporation of Ceylon, the National Development Bank of Sri Lanka, the National Housing Development Authority, the Housing Development Finance Corporation Bank of Sri Lanka, any registered society, any other prescribed institution.

The sections worth reading twice

Four provisions decide most of what this tool returns, so they are quoted in full rather than summarised.

s. 46— Land Development Ordinance (Cap. 464)

(1) Subject to the provisions of subsection (2), no permit-holder shall execute or effect any disposition of the land alienated to him on the permit. (2) With the written consent of the Government Agent, a permit-holder may mortgage his interest in the land alienated to him on the permit to any registered society of which he is a member. (3) Any disposition, other than a disposition in accordance with the provisions of subsection (2), of any land alienated on a permit shall be null and void.

s. 19(6)— Land Development Ordinance (Cap. 464)

Every grant issued under subsection (4) shall contain the conditions that the owner of the holding shall not (a) dispose of a divided portion, or an undivided share of the holding which is less in extent than the unit of the sub-division or the minimum fraction specified in the grant; and (b) dispose of such holding except with the prior approval of the Government Agent.

s. 19(7)— inserted by s. 4 of the Land Development (Amendment) Act, No. 11 of 2022

Notwithstanding the provisions of paragraph (b) of subsection (6), the approval of the Divisional Secretary shall not be required when mortgaging such holding to a licenced commercial bank, the State Mortgage and Investment Bank, the Development Finance Corporation of Ceylon, the National Development Bank of Sri Lanka, the National Housing Development Authority, the Housing Development Finance Corporation Bank of Sri Lanka, any registered society or other prescribed institution.

s. 42— Land Development Ordinance (Cap. 464)

The owner of a holding may dispose of such holding to any other person except where the disposition is prohibited under this Ordinance, and accordingly a disposition executed or effected in contravention of the provisions of this Ordinance shall be null and void.

Cross-checks

The rule engine ships with the hand-worked cases above written as executable checks, plus two structural ones: rule 1 of the Third Schedule is implemented twice, once by scanning the groups in order and once by sorting every willing relative on a lexicographic key, and the two must agree; and the s. 19(6)(a) boundary is tested from both sides, so a portion exactly on the floor passes and one a hundredth of a perch under it fails.

26 of 26 checks pass.

Frequently asked questions

Sources & references

Act No. 11 of 2022 was read in full from Parliament’s own server on 2026-09-27and every quotation from it is verbatim. The rest of the Ordinance is quoted from the consolidation to 2024, which is a private publication: on the same day lawnet.gov.lk served nothing usable over TLS and documents.gov.lk closed the connection, so the consolidation could not be diffed against an official copy of the whole Ordinance. What could be checked was — all seven provisions the 2022 Act touches match the official Act word for word, including the Third Schedule’s table and definitions. Anything on this page marked “practice” comes from the Land Commissioner General’s published procedure and is administrative, not statutory.

This page is statutory information, not legal advice. The Divisional Secretariat holding your file decides in fact, provincial land statutes may add conditions on top of the Ordinance, and personal-law overlays (Kandyan law, Thesawalamai, Muslim law) are not modelled — the Third Schedule applies to the holding itself. Consult an Attorney-at-Law before you act.

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