Cabinet nods 99-year lease plan for prime Kottawa land under mixed development project
Daily FT: As part of efforts to unlock the commercial value of underutilised urban land, the Cabinet of Ministers on Monday approved plans to lease a prime State-owned land parcel in Kottawa for 99-years to a private investor for a mixed-use development project.
The land, measuring just over one acre, is located in the heart of Kottawa town along the High Level Road, within the limits of the Maharagama Urban Council in the Colombo District.
The property had previously been transferred to the Urban Development Authority (UDA) as a free-grant under Section 6(1) of the Government Lands Ordinance.
A Cabinet-appointed Special Committee tasked with identifying commercially viable uses for idle UDA-owned properties had recommended that the site be developed as a mixed development project, given its strategic location and commercial potential.
Based on that recommendation, the Cabinet of Ministers approved the proposal submitted by Transport, Highways and Urban Development Minister Bimal Rathnayake to call for investment proposals under Government procurement guidelines.OSL take:
Sri Lanka is continuing to expand business/investment opportunities for foreign businesses/investors as the Sri Lankan government accelerates efforts to unlock the value of underutilised state assets and promote private sector-led development. The Cabinet’s approval to lease a prime state-owned land parcel in Kottawa for a 99-year mixed-use development project highlights the country’s growing focus on urban development, real estate modernisation, and long-term investment partnerships. The move presents opportunities for foreign businesses/investors in property development, construction, infrastructure, retail, hospitality, and commercial services. As urbanisation and economic activity continue to expand, demand is increasing for modern residential complexes, office space, shopping centres, hotels, and integrated mixed-use developments in strategically located urban areas. Sri Lanka’s wider development agenda is also creating investment prospects across transport, logistics, tourism, renewable energy, agriculture, technology, and manufacturing sectors. Government-backed projects, public-private partnerships (PPPs), and long-term land lease arrangements are providing international investors with greater confidence and access to emerging opportunities in the country. With its strategic location in the Indian Ocean, improving infrastructure, skilled workforce, and commitment to economic development, Sri Lanka is positioning itself as an attractive destination for foreign businesses seeking growth opportunities in South Asia.
| Article Code : | VBS/AT/20260515Z_4 |