Sri Lanka offers Colombo state bungalows for 30-year commercial leases

The Sri Lankan government has invited Expressions of Interest (EOIs) from private investors to commercially develop and operate several state-owned heritage bungalows in Colombo under 30-year lease agreements. The initiative, led by the Ministry of Finance, Planning and Economic Development, aims to unlock the economic potential of these strategically located properties while the state retains ownership of the land and buildings.

The current proposal includes six specific listings in Colombo 5, located at Stanmore Crescent, Paget Road, and Skelton Road. These properties are intended for adaptive reuse, such as boutique hotels, restaurants, cafés, and tourism-oriented retail. Investors must be locally registered entities capable of demonstrating financial capacity through three years of audited statements.

Selection will be conducted through a national competitive process, with the highest lease rental offered serving as the primary basis for awarding contracts. Successful bidders will be required to pay an upfront premium equal to three years of annual lease rental and a refundable deposit equivalent to six months’ rent. Commercial operations must begin within 90 days of signing the agreement. The deadline for submitting proposals is August 25, 2026.