Former President Chandrika Kumaratunga who was involved in the sale of the land was ordered to pay three million rupees as compensation, lawyers said.Justice Shirani Tilekewardene delivering the judgement has observed that a president exercises power in trust for the public.
The transfer of state land, which was originally a marsh that was used for flood retention purposes in the low-lying area, has long been a controversy.
The land was transferred through a 99-year lease.
The land was developed by Sri Lanka's Access group.
The lease is to be cancelled within a month and the transfer back to state completed within four months, a UDA official said.