Cabinet approves fresh call for investment proposals for Kollupitiya land

Colombo, Dec. 11 (Daily Mirror) - The Cabinet has approved a proposal to call for new investment proposals to lease a prime land plot in Kollupitiya, following the cancellation of a previous agreement due to non-compliance by the selected investor.

The land measuring 02 roods and 23.1 perches and located at Perahera Mawatha, Colombo 03 is owned by the Urban Development Authority (UDA). Approval was initially granted on September 13, 2024, to dispose of the property to an investor for a mixed development project that included residential components.

However, the Standing Negotiations Committee appointed by the Cabinet recommended terminating the lease after the investor failed to meet the required conditions.

Subsequently, on September 4, 2025, the UDA Board of Management granted approval to recall investment proposals for the land, targeting a suitable development initiative. A special Cabinet-appointed committee overseeing UDA land transactions also approved calling for proposals to use the land for hotel or commercial purposes, with the condition that no more than 50% of the land be allocated for residential use.

In line with these recommendations, the Cabinet has now approved a proposal submitted by the Minister of Transport, Highways and Urban Development to invite investment proposals under the International Competitive Procurement Procedure. The land will be disposed of on a 99-year lease, based on the valuation provided by the government’s Chief Assessor.