Sri Lanka seeks private investment for Colombo state bungalows

The Government of Sri Lanka has earmarked three state-owned bungalows in prime Colombo locations to be transformed into commercially viable destination accommodations, according to a recent Request for Proposals issued by the Ministry of Finance, Planning and Economic Development.

The initiative targets properties located on Stanmore Crescent, Paget Road, and Skelton Road—all within Colombo 5.

The primary objective is to unlock the economic potential of these underutilized public assets through private-sector investment and expertise, while ensuring the state retains ultimate ownership of the land.

Authorized by the Secretary of the Ministry in accordance with the State Lands Ordinance No. 8 of 1947, the project invites investors to adaptively reuse, refurbish, develop, operate, and maintain the bungalows.

Permitted commercial activities include boutique lodging, retail spaces, cafés, restaurants, and other compatible ventures designed to generate fresh economic value in the capital.

The selected properties will be leased to investors for a 30-year term through a National Competitive Selection Process, with awards granted to compliant bids offering the highest lease rentals.

The development framework allows for minor repairs and the erection of temporary structures, subject to regulatory approval, with each bungalow being evaluated as an independent project.

Under the terms of the agreement, investors will bear sole responsibility for obtaining all necessary statutory approvals, permits, and legal clearances.

Through this initiative, the government aims to optimize state assets, stimulate tourism and hospitality, preserve existing structures, enhance urban land value, and secure a sustainable revenue stream via lease rentals.