By: Staff Writer
December 15, Colombo (LNW): The re-tendering of prime land on Perahera Mawatha, Colombo 3, has raised questions about transparency and decision-making in Sri Lanka’s urban development landscape. The parcel, Assessment No. 135, initially leased to Global Leasing Limited in September 2024 for a mixed-use development, has been reclaimed by the government after the investor reportedly failed to meet contractual obligations.
Global Leasing Limited, a well-established developer, has a track record of urban and mixed-use projects in Colombo and other urban centers, combining residential towers, commercial spaces, and hospitality ventures.
Under previous regimes, the company successfully delivered several high-profile projects, navigating complex regulatory and planning environments. The Kollupitiya project, however, remained incomplete, prompting the Standing Negotiations Committee to recommend termination.
Despite official statements citing contractual non-compliance, details of the unmet obligations remain vague. Industry insiders point to possible delays in construction approvals, financing challenges, or shifting government directives as contributing factors issues not publicly clarified by authorities.
In September 2025, the Urban Development Authority (UDA) Board authorised a fresh call for proposals to prevent the land from lying idle. A cabinet-appointed committee overseeing UDA land disposal has now endorsed a new tender prioritising hotel or commercial development, while allowing up to 50 percent residential use.
The revised lease will be executed under International Competitive Procurement for 99 years, based on a valuation by the Government Chief Assessor.
Urban Development Minister Bimal Rathnayake stated that the re-tender is intended to attract credible investors capable of completing a high-value project in one of Colombo’s most sought-after urban locations.
But the absence of public clarification on why Global Leasing Limited’s lease was terminated has sparked debate, with analysts warning that inconsistent policy decisions may undermine investor confidence.
While the new tender may ultimately generate high-quality development, the episode highlights the need for transparency in managing public land and balancing contractual enforcement with practical challenges in complex urban projects
