August 11, Colombo (LNW): The Government is moving to put a collection of strategically located State-owned properties in Colombo to commercial use, inviting private investors to transform the premises into tourism and hospitality-related businesses under long-term lease arrangements.
The Ministry of Finance, Planning and Economic Development has called for proposals from eligible investors to renovate, adapt, operate and maintain the properties, with successful bidders being granted leases extending for 30 years.
The properties covered by the initiative are B13, B14 and B20 on Stanmore Crescent, C61 and C62 on Paget Road, and E01 and E02 on Skelton Road in Colombo 5. The Government envisages a range of commercial uses, including boutique accommodation, cafés, restaurants and retail outlets catering to the tourism market.
Officials say the programme is intended to generate greater economic value from State assets in prime urban locations without transferring ownership of the properties. Private-sector operators would be responsible for bringing the premises back into productive use and managing their commercial operations.
Investors may submit proposals for one or several properties. However, each bungalow will be assessed independently and awarded separately through a national competitive bidding process. The highest lease rental offered by a bidder meeting the eligibility requirements will be a key factor in determining the successful proposal.
The opportunity is open to locally registered companies, individual businesses, consortiums and joint ventures. Applicants will also have to demonstrate sufficient financial strength, including by producing audited accounts covering the previous three years.
Those securing leases will be required to make an upfront payment equivalent to three years of the agreed annual rent, together with a refundable security deposit equal to six months’ rent. Commercial activities are expected to begin within 90 days of the lease agreement being signed.
Prospective investors have been invited to attend a property viewing and clarification session at the Finance Ministry on August 12. The deadline for submitting proposals is 2pm on August 25, 2026.
The initiative forms part of a broader effort to encourage private capital into State assets and potentially turn underutilised government properties into revenue-generating commercial and tourism facilities.