In a major urban development move, Colombo’s iconic Pettah Floating Market is set for a Japanese takeover with a massive $160 million lease deal that promises complete modernization and revival of the struggling complex.
The Urban Development Authority is finalizing a monumental deal to lease the Pettah Floating Market Complex to a Japanese investor for US$160 million. This strategic move comes as the authority seeks to revitalize the underutilized property that has faced significant challenges in recent years.
The investor, who has already demonstrated commitment by paying US$16 million upfront to the UDA, plans comprehensive modernization of shops and the night market at the complex. The facility will be leased in its current condition, with ongoing discussions about providing appropriate compensation to existing shop owners. The deal has been in the making since former Minister of Urban Development Dr. Anura Karunathilaka first met the investor during his tenure, with senior UDA officials holding special discussions yesterday to advance the agreement.
Originally constructed by the Mahinda Rajapaksa government in 2014 at a cost of Rs. 344 million, the six-acre complex features 92 shops including two large restaurants, with 10 shops uniquely positioned on Beira Lake. The UDA invested an additional Rs. 50 million in 2021, yet the market struggled significantly due to low trade during COVID-19 pandemic restrictions and the subsequent economic crisis. Despite initial plans to attract tourists with local handicrafts and traditional foods, the project lost its original focus when street vendors were allowed to operate there. The complex has operated without proper maintenance for over two years, making the Japanese investment crucial for its revival. The UDA had previously spent Rs. 14.9 million on a 20-second promotional advertisement featuring a foreign announcer, highlighting previous efforts to market the struggling asset.
