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1 billion rupees, its debenture prospectus has revealed. People occupying state-owned land are to be resettled and the property they were on are to be opened up for development by the private sector.
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The auditor-general's report said the UDA's net assets were a negative 87 million rupees and its going concern is uncertain without government financial aid.
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The report said 627 million rupees due from customers had remained unrecovered for over 10 years, including rent income of 204 million rupees from market complexes.
The information was revealed in the UDA's prospectus for the issue of five-year debentures to raise cash to resettle squatters occupying prime property in Colombo city owned by government and to free them for private sector commercial development.
"The net assets of the Authority had deteriorated by 80 percent and it was observed that the going concern of the Authority is uncertain without the financial assistance from the government," the report by the auditor-general's department said.
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The Urban Development Authority is