The Cabinet of Ministers has approved a fresh call for investment proposals to lease a prime land plot in Kollupitiya, Colombo 03, following the cancellation of a previous agreement due to non-compliance by the selected investor.
The land, measuring 02 roods and 23.1 perches and located at Perahera Mawatha, is owned by the Urban Development Authority (UDA). Initially, on September 13, 2024, approval was granted to dispose of the property to an investor for a mixed development project that included residential components.
However, the Standing Negotiations Committee appointed by the Cabinet recommended terminating the lease after the investor failed to meet the required conditions.
Subsequently, on September 4, 2025, the UDA Board of Management approved recalling investment proposals for the land to pursue a suitable development initiative. A special Cabinet-appointed committee overseeing UDA land transactions also approved calling for proposals to use the land for hotel or commercial purposes, stipulating that no more than 50% of the land be used for residential development.
In line with these recommendations, the Cabinet has approved a proposal by the Minister of Transport, Highways and Urban Development to invite proposals under the International Competitive Procurement Procedure. The land will be offered on a 99-year lease, based on the valuation provided by the government’s Chief Assessor.
