Sri Lanka to re-invite bids for Dedduwa tourist resort, says Prime Minister
EconomyNext: Sri Lanka’s government is set to recall Expressions of Interest (EOI) for the long-delayed Dedduwa Lake-Based Tourist Resort Development Project in Bentota, after previous investment proposals failed to clear financial evaluations, Prime Minister Dr. Harini Amarasuriya told parliament.
The proposed initiative aims to transform 694.54 hectares of acquired inland territory into an eco-friendly integrated lake resort featuring floating accommodation, water sports, nature activities, and agri-tourism programs to diversify Bentota’s coastal tourism economy.
Responding to questions in parliament, Prime Minister Amarasuriya stated that although the government re-invited EOIs and Requests for Proposals in 2026 following a cancelled 2022 deal, the submitted bids did not meet financial requirements.
“Although two proposals were received, neither investor submitted sufficient financial proof to confirm the required financial capacity; therefore, the Development Proposal Evaluation Committee did not recommend any proposal,” Amarasuriya said.
Land acquisition for the project began around 2005 and concluded in late 2017, with 1,068 landowners receiving LKR 147.3 million in compensation alongside LKR 88.8 million in interest payments. The lands have since been vested with the Sri Lanka Tourism Development Authority (SLTDA).
Prior to floating fresh investment tenders, authorities are prioritizing infrastructure development and land management in the project zone. The Bentota Divisional Secretariat has been tasked with acquiring an additional 27 to 30 acres to construct a dedicated main access road inland from Galle Road.
Prime Minister Amarasuriya informed the house that state agencies are currently addressing ground-level obstacles to prepare the site for new investors.
“Currently, the Sri Lanka Tourism Development Authority, together with the Bentota Divisional Secretariat and other relevant institutions, is working to demarcate boundaries and resolve issues related to unauthorized land encroachments,” she added.
The government expects the project to boost national tourism revenue once a capable investor is selected.
OSL take:
Sri Lanka’s plans to revive the long-delayed Dedduwa Lake-Based Tourist Resort Development Project highlight the expanding business/investment opportunities for foreign businesses/investors in the country’s tourism industry. The proposed 694-hectare integrated eco-tourism resort, featuring floating accommodation, water sports, nature-based activities and agri-tourism, reflects Sri Lanka’s growing focus on developing new tourism products beyond traditional coastal destinations. For foreign businesses/investors, opportunities are emerging across eco-tourism, boutique and resort accommodation, adventure tourism, wellness, water-based recreation, agri-tourism and supporting infrastructure. The development of new destinations such as Dedduwa could also help spread tourism activity beyond established hotspots while creating new regional business/investment opportunities. As Sri Lanka seeks to diversify its tourism economy and attract higher-value visitors, large-scale destination development projects could provide foreign businesses/investors with opportunities to bring capital, technology, expertise and international tourism networks into the country’s expanding tourism sector.
| Article Code : | VBS/AT/20260812Z_4 |