The government has invited private investors to develop and operate six state-owned bungalows in Colombo 5 under three-decade lease agreements, with proposals due by August 25.
The Ministry of Finance, Planning and Economic Development has launched a call for investment proposals to commercially develop six government-owned bungalows across Colombo 5. The properties, located at Stanmore Crescent, Paget Road, and Skelton Road, are available under 30-year lease arrangements and are intended for tourism-related businesses including cafés, restaurants, boutique suites, and retail establishments.
The initiative seeks to generate economic returns from strategically positioned state assets while maintaining public ownership of the underlying land and structures. Interested investors may bid for individual properties or multiple listings, with selections determined through a competitive bidding process based on the highest annual lease rental offered. The government has stipulated that successful bidders must be locally registered entities—whether companies, individual businesses, consortiums, or joint ventures—and must provide evidence of financial stability through three years of audited financial statements.
Financial obligations for winning bidders include an upfront premium equal to three years of annual lease rental, along with a six-month refundable security deposit. Selected investors must also begin commercial operations within 90 days of finalizing the lease agreement. A prospective investor viewing and information session is scheduled for August 12 at the Finance Ministry, with the proposal submission deadline set for 2 p.m. on August 25, 2026.
