International
Nepal Embassy Land in Colombo Allegedly Sold Twice, Auditor General Raises Serious Concerns
By Ranjeet Yadav • 5/15/2026, 1:51:16 PM
Reading time: 3 min
15 May Kathmandu Nepal's Auditor General has stated that a land bought by the Government of Nepal in Colombo, Sri Lanka nearly 36 years ago for the construction of a Nepali embassy has reportedly been sold twice to private individuals.
The problem was flagged in the 63rd annual report of the Auditor General, which showed serious irregularities in the ownership and protection of the property.
Nepal bought about 1.5 acres of land in Colombo in 1989 for about USD 360,000 with the idea of building an embassy building in Sri Lanka, the report said.
But even then, the land does not have proper official ownership documents in the name of Nepal, one of the sources said, even though the purchase was made decades ago.
🏛️ Land claim rejected as 'sold twice'
The Auditor General’s report said some of the embassy land was allegedly sold twice to private buyers in 1994, creating major legal and diplomatic complications over ownership.
The report says poor administrative oversight and failure to get legal documents allowed the controversial transactions.
Officials say if no proper legal action is taken immediately, Nepal may find it difficult to reclaim or fully control the property.
📄 Lost Deeds of Property Ask Questions
The report raises one of the most serious concerns about the absence of complete and verified ownership records.
Despite the government purchasing the land over three decades ago:
- Transfer of ownership procedures allegedly incomplete
- Legal registration was not properly secured.
- Inadequate land protection mechanisms
The Auditor General cautioned that not keeping proper records of assets could lead to the loss and illegal dealings of valuable state assets.
Property Acquired for Use as Embassies
The Colombo land was initially purchased to set up Nepal’s diplomatic mission and to boost official presence in Sri Lanka.
But the embassy project was never fully fleshed out as originally planned.
The incident exposes wider concerns about, say experts:
- Protection of foreign properties of the State
- Diplomatic assets management
- Management accountability
- Poor long-term monitoring systems
⚠️ Govt told to act now
Now the Auditor General has advised the Nepal government to:
- Verify the title status of the land
- All legal paperwork done for you
- regain control of disputed areas
- Proper protection and utilization of the property
The report further underlined the necessity of improved monitoring of Nepal’s assets abroad so that such incidents do not recur in the future.
🏛️ Cases of Administrative Negligence
The disclosures have drawn criticism about how such a valuable foreign holding went unmanaged for decades.
Analysts cite the problem as a symptom of:
bureaucratic neglect
- Bad management of diplomatic assets
- No institutional responsibility
Some observers also want an inquiry into whether any officials were involved in administrative failures surrounding the disputed transactions.
📌 Summary
The reported double sale of Nepal’s embassy land in Colombo has raised serious questions about the management and safeguarding of state-owned properties abroad.
The case is likely to spark a wider debate over transparency, accountability and management of diplomatic properties in Nepal as the government is under pressure to prove ownership and assert full control over the land.
Tags: Nepal Embassy Land, Colombo Land Dispute, Auditor General Nepal, Nepal Sri Lanka Relations, Government Property Nepal
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