Sri Lanka to revive stalled mega developments in Colombo in Q1
Daily FT: The Government has announced plans to restart long-stalled mega mixed-development projects and abandoned high-rise buildings in Colombo by the end of first quarter.
Addressing a media briefing, Housing, Construction and Water Supply Deputy Minister T.B. Sarath has said this renewed push aims to unlock idle assets and revive urban development delayed by irregularities, financial misappropriations, and the economic crisis.
“We have already held multiple consultations with contractors and relevant stakeholders, and have appointed a Ministerial Consultative Committee with the participation of the Urban Development Authority (UDA) and the National Housing Development Authority (NHDA) to fast-track the process,” he added.
The Deputy Minister said many of the projects were initiated decades ago, and following the economic crisis, the cost structures now require reassessment and renegotiation.
“Despite these challenges, the Government expects most of the stalled developments to be restarted by March,” Sarath stressed.
Housing, Construction and Water Supply Ministry Secretary Eng. Kumudu Lal Bogahawatta said the projects under review include high-profile private sector developments, notably the Indian-invested Krrish project in Colombo Fort and the Pakistan-backed Destiny residential and shopping complex in Kompannavidiya, Colombo 2.
He revealed that 11 new construction projects were identified in 2025, but only six have commenced so far, while five projects planned under Public-Private Partnership (PPP) arrangements are yet to begin. “These projects are currently awaiting Cabinet approval of revised cost estimates before reconstruction can commence,” he said.
OSL take:
Sri Lanka’s development programme has become a hotspot for business/investment opportunities with many such ventures opening up in all sectors. The Sri Lankan government has started to recommence large-scale development projects that were put on hold in 2022 during the economic crisis faced by the country. With Sri Lanka back on a growth trajectory with steady growth being recorded in all key economic sectors, the recommencement of the large-scale development projects, while presenting many business/investment opportunities, also indicate the need for Sri Lanka to be on par with the fast-evolving global trends to meet the increasing demand of an emerging business destination. Supported by the country’s strategic positioning in the Indian Ocean, strong trade ties with many foreign countries and the improving business conducive environment in the country have all placed Sri Lanka on the path to becoming a hub in the South Asian region. Given all these factors and the increasing business potential in Sri Lanka, foreign businesses/investors could explore the expanding business/investment opportunities in Sri Lanka’s development programme and related sectors.
| Article Code : | VBS/AT/20260116/Z_1 |