After years of failed attempts, Sri Lanka’s government revives the Beira Lake mixed-use development project, offering prime land in Colombo 10 on a 99-year lease for luxury investment proposals in hotels, malls, and recreation.
Beira Lake Back in Spotlight as Government Revives Colombo’s Iconic Development Plan
After over a decade of setbacks and missed opportunities, Sri Lanka’s government is reigniting interest in the ambitious Beira Lake mixed-use development project by offering prime real estate in central Colombo under a new investment scheme. The project site, located at No. 40, D.R. Wijewardene Mawatha in Colombo 10, comprises 3 roods and 13.85 perches of prime land under the ownership of the Urban Development Authority (UDA). The land is now being offered to investors on a 99-year lease, with cabinet approval already secured.
The renewed effort is part of a strategic urban regeneration plan aimed at transforming the Beira Lake surroundings into a vibrant commercial and recreational district. Despite its high potential, the project has long been plagued by delays, cancellations, and economic uncertainty.
One notable example dates back to 2017, when a US$200 million luxury resort proposed by Queensbury Leisure Limited, a company owned by billionaire businessman Dhammika Perera, was cancelled. Later, in 2022, Japanese real estate giant Belluna and its Sri Lankan partner Asia Capital also pulled back from their Rs. 4 billion investment in the same location, citing liquidity concerns and broader economic instability.
Officials from the Urban Development Authority now confirm that the government will actively accept fresh proposals for high-end hotels, retail spaces, shopping malls, convention centres, and other leisure facilities around Beira Lake. Conceptual plans also include a 6 to 12-metre-wide linear park, children’s playgrounds, cultural zones, and water-based recreational areas to enhance the lifestyle appeal of the area.
However, key implementation barriers remain. Much of the land designated for development is currently occupied by government entities, including the Excise Department, Sathosa Warehouses, and CW Mackie PLC. These premises must be relocated before any new construction begins. Authorities have already cleared out approximately 320 unauthorized settlements in the vicinity, with over 1,000 additional removals scheduled in the near future to free up space for development.
Furthermore, ongoing discussions are in progress to shift the remaining state offices and warehouses out of the proposed zone. According to the UDA, based on assessments from the government’s Chief Valuer, the land will be made available to investors with a payment model that combines both upfront payments and installment plans to improve accessibility.
This fresh push to revive development near Beira Lake highlights the government’s renewed focus on positioning Colombo as a competitive investment destination in South Asia. If executed effectively, the project promises to reshape the Beira Lake corridor into a dynamic urban centre that blends tourism, commerce, and public recreation.
