By: Staff Writer
September 14, Colombo (LNW): A fresh controversy has erupted in Parliament over the lease of the Southern Expressway’s sole rest stop, the “Canowin Arcade” at Welipenna, following shocking revelations about its terms. Transport and Highways Minister Bimal Ratnayake told lawmakers this week that the facility had been handed over on a 99-year lease for a token fee of just Rs. 10,000 a sum critics say makes a mockery of public asset management.
The lease, granted in March 2012 during the Rajapaksa administration, was approved by Cabinet on a proposal submitted by then President Mahinda Rajapaksa in his capacity as Ports and Highways Minister. It was awarded to Canowin Hotels & Spas (Pvt) Ltd., a subsidiary of the state-owned Sri Lanka Insurance Corporation (SLIC). The company was tasked with developing and managing service areas along the Southern Expressway, which includes food courts, restrooms, fuel stations, and retail shops.
While later clarifications stressed that the property was not transferred to a private investor but instead to an SLIC-owned company, the nominal lease fee and extraordinary 99-year duration have drawn heavy criticism. “The public deserves to know how a vital national asset was locked away for the cost of a single meal,” Minister Ratnayake told Parliament. “This is not about privatization; it is about accountability.”
Analysts argue that even though Canowin Hotels is state-owned, the financial arrangement undermines basic governance principles. They question whether the state secured adequate value for a high-traffic commercial facility that serves thousands of commuters daily. For many, the symbolic lease terms reflect a broader pattern of opaque decision-making in the management of public property during past administrations.
The Canowin Arcade was promoted as a flagship rest complex during the rollout of the Southern Expressway, Sri Lanka’s first and longest highway. However, the revelation of its virtually free lease has reignited doubts about how key infrastructure projects were structured and whether long-term public interest was compromised.
Lawmakers from across the aisle are now demanding a comprehensive audit of the lease terms, Canowin Hotels’ operational performance, and the justification for awarding a century-long concession. Governance experts caution that without greater transparency, even state-to-state transactions risk fostering inefficiency, political favoritism, and public mistrust.
As Sri Lanka grapples with severe fiscal constraints, the controversy underscores the urgent need for reforms in managing state assets. Critics argue that every rupee of potential revenue counts, and sweetheart deals even within state entities deprive the treasury of much-needed income. For the public, the Canowin Arcade episode is more than a question of one highway rest stop; it is a test case for accountability in the stewardship of national resources.
