UDA to lease Pettah Floating Market to Japan for $160 million

• The investor has already paid US$16 million to the UDA
• Plans to modernize shops and the night market at the complex

By Indika Sri Aravinda

The Urban Development Authority (UDA) is preparing to lease the Pettah Floating Market Complex to a Japanese investor for US$160 million.   

The investor plans to modernize the shops and the night market at the complex, which will be leased in its current condition. Discussions are ongoing about providing compensation to the existing shop owners. The investor has already paid US$16 million to the UDA.   

Former Minister of Urban Development, Dr. Anura Karunathilaka, met this investor during his time in office. Yesterday (25), senior UDA officials held a special discussion regarding the lease.   

The Pettah Floating Market was originally built by the Mahinda Rajapaksa government in 2014 at a cost of Rs. 344 million. The complex covers six acres, with 92 shops, including two large restaurants, 10 of which are located on Beira Lake. Additional spending of Rs. 50 million was made by the UDA in 2021.   

The floating market struggled due to low trade during the COVID-19 pandemic and the economic crisis, causing significant losses. Although it was initially planned to attract tourists and sell local handicrafts and traditional foods, the project lost its focus when street vendors were allowed to operate there.   

The market has been operating without maintenance for over two years. The Japanese investor is expected to modernize the entire complex under a new plan. The UDA has also spent Rs. 14.9 million to produce a 20-second promotional advertisement with a foreign announcer.