Govt. to retender prime Colombo 03 land following lease cancellation

The Cabinet of Ministers this week approved a proposal to invite fresh investment proposals for a high-value land plot at Perahera Mawatha, Kollupitiya, following the cancellation of a previous lease agreement due to non-compliance.

The decision, proposed by the Minister of Transport, Highways, and Urban Development, seeks to dispose of the property on a 99-year lease basis under an International Competitive Procurement Procedure.

The property in question is a land plot approximately 02 roods and 23.1 perches in extent, owned by the Urban Development Authority (UDA). Situated at Perahera Mawatha, Colombo 03, the site is located in a commercially vital district near the Beira Lake and the central business district.

The government had previously granted approval on September 13, 2024, to lease a portion of this land to a selected investor for a mixed development project. 

External records identify the investor selected during the September 2024 period as Global Leasing Limited, who had secured approval for a lease at Perahera Mawatha (Assessment No. 135).

However, the Cabinet-appointed Standing Negotiations Committee recommended canceling the lease after the investor failed to fulfill the relevant assignment conditions. Consequently, the UDA Management Board granted approval on September 4, 2025, to recall proposals to find a suitable alternative development plan.
As per the new investment conditions under the fresh terms approved by the Cabinet, the land will be released for hotel or commercial purposes. The government has placed strict zoning conditions on the new tender, stipulating that a maximum of 50 percent of the land can be utilised for residential purposes, ensuring the project aligns with the commercial demands of the area.

The lease value will be determined based on the assessment of government’s Chief Assessor.