Sri Lanka to lease 24 ex-ministerial bungalows under PPP model
Daily FT: The Cabinet of Ministers at their first meeting for 2026 held on Monday (5) approved calling for expressions of interest (EOIs) from investors to lease 24 identified bungalows and houses under a public-private partnership (PPP) model, aiming to ensure more productive and economically viable use of underutilised State assets.
The selected properties will be offered on a 30-year lease basis, with the Government noting that the process will be carried out without creating social concerns.
Addressing the weekly post-Cabinet media briefing yesterday, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said the move follows recommendations made by an appointed Officers’ Committee tasked with identifying effective strategies to utilise former ministerial residences and other underutilised State-owned properties.
According to Jayatissa, the committee has proposed repurposing the bungalows and houses for embassies, international organisations, diplomatic missions, Government and Government-affiliated institutions, as well as high-end restaurants, boutique hotels and other productive investment ventures.
On 9 December 2024, the Cabinet of Ministers decided to appoint an Officers’ Committee, which called for a comprehensive review of properties previously used as ministerial quarters and other underutilised premises. The objective was to ensure their effective and economical utilisation while aligning with broader public interest and development goals.
“The EOI process is expected to help identify suitable investors and projects that can maximise returns from these assets, while supporting private sector participation and reducing the fiscal burden on the State,” he added.
OSL take:
While the country is on a steady economic growth path, Sri Lanka’s development programme has presented many business/investment opportunities to foreign businesses/investors. While there has been expansion recorded in all key economic sectors in the country, there are many forms of opportunities as well. These range from direct business/investment opportunities to joint ventures and PPPs. With Sri Lanka working towards becoming a regional hub supported by the country’s geographical positioning in the Indian Ocean, strong trade ties with many foreign countries and a continuously improving ease of doing business environment in the country, the increasing business potential in Sri Lanka has already attracted many foreign businesses/investors to the country. While some foreign businesses/investors are already engaged in Sri Lanka’s expanding economy, others are continuing to explore opportunities. Given that Sri Lanka’s development programme covering all key sectors present many opportunities, foreign businesses/investors could explore these and also look at the different businesses models that range from joint ventures with local businesses to PPPs.
| Article Code : | VBS/AT/20260109/Z_3 |