The government has called for investment proposals to commercially develop and operate a number of State-owned bungalows in Colombo under 30-year lease agreements.
The Ministry of Finance, Planning and Economic Development has invited eligible investors to submit proposals for the adaptive reuse, refurbishment, development, operation and maintenance of the properties.
Six listings are included in the proposal: B13, B14 and B20 at Stanmore Crescent, C61 and C62 at Paget Road, and E01 and E02 at Skelton Road, all in Colombo 5. The properties are proposed for tourism-related retail businesses, boutique suites, cafés and restaurants.
The government said the initiative is aimed at unlocking the economic potential of strategically located State-owned properties through private-sector investment while retaining government ownership of the land and buildings.
Investors can submit proposals for one or more properties, but each bungalow will be evaluated and awarded separately. The selection will be made through a national competitive process, with the highest lease rental offered by an eligible bidder forming the basis for selection.
Eligible applicants must be locally registered entities, including companies, individual businesses, consortiums or joint ventures, and must demonstrate their financial capacity, including through audited financial statements for the previous three years.
The successful investor will also be required to pay an upfront premium equivalent to three years of annual lease rental and a refundable deposit equivalent to six months’ rent. Commercial operations must commence within 90 days of executing the agreement.
The deadline for submitting proposals is 2 p.m. on August 25, 2026. A viewing and clarification meeting for prospective investors is scheduled for August 12 at the Finance Ministry.