Lands minister M.K.D.S. Gunwardena made the comment when BBC Sandeshaya inquired from him about the delay in the returning of land belonging to Panama villagers near Arugambay tourist resort.
He noted that the land would be returned to original settlers once boundaries are redemarcated and the documents prepared as soon as possible.
Villagers say the Navy has built several constructions in the land taken over from them.
The minister responded by saying that leaders of the previous regime and their brothers had built hotels etc. in the name of the Navy.
He said the government was prepared to consider if any request is made to compensate the owners who had been expelled from their land for political reasons for five years.
As part of the new government’s efforts to promote national reconciliation, 1,000 acres of Jaffna land have already been returned to their original owners, he said.