The Sri Lankan government will relaunch a bidding process for the Dedduwa Lake-Based Tourist Resort Development Project in Bentota after earlier investment proposals did not meet financial requirements, Prime Minister Harini Amarasuriya announced in parliament.

Sri Lanka's government intends to call fresh Expressions of Interest for the Dedduwa Lake-Based Tourist Resort Development Project in Bentota, according to Prime Minister Dr. Harini Amarasuriya. The initiative seeks to convert approximately 694.54 hectares of acquired land into an integrated eco-tourism facility featuring floating accommodation, water sports activities, nature programs, and agri-tourism offerings.

The bidding process encountered obstacles when authorities reissued investment calls in 2026 following a cancelled 2022 arrangement. According to the Prime Minister, two proposals were subsequently received, but neither demonstrated adequate financial capacity to meet the project's requirements. Consequently, the Development Proposal Evaluation Committee declined to recommend any of the submissions for approval.

Land acquisition for the project commenced around 2005 and concluded in late 2017, with compensation totaling LKR 147.3 million distributed to 1,068 property owners, plus LKR 88.8 million in interest payments. The properties have been transferred to the Sri Lanka Tourism Development Authority. Before inviting new investors, government agencies are prioritizing infrastructure development and addressing on-site challenges. The Bentota Divisional Secretariat has been assigned to acquire an additional 27 to 30 acres for constructing a main access road from Galle Road, while authorities work to demarcate boundaries and resolve unauthorized land encroachments within the project zone.