Ministerial bungalows in Colombo will be leased for retail, cafes, hotels, embassy offices and residences under a new 30-year private sector plan.
The ministerial bungalows in Colombo are set for a major commercial transformation after the Cabinet of Ministers approved plans to allocate twenty-four state-owned residences for retail trade, cafes, restaurants, small hotels, embassy offices, and other office premises.
Accordingly, Cabinet approval has been granted to allocate twelve bungalows in Zone 1, covering Stamford Crescent, Macanzie Street, Cappedi Pala Mawatha, and Paget Road, for retail trade under boutique suites, cafes, and restaurants. Two residences on Bauddhaloka Mawatha, identified as D2 and D4, will be used for retail trade, embassy offices, and residences. Two bungalows in Zone 2 on Skeleton Road, identified as E1 and E2, will be allocated for boutique hotels and retail trade, while nine bungalows in Zone 3, covering Wijerama Mawatha and Kobekkaduwa Mawatha, will be used for residences, embassy offices, and office premises.
The project is expected to create a walkable cultural loop where museums, leisure areas, retail trade, restaurants, accommodation facilities, service stations, and social life are connected within one urban development space.
The Secretary to the Ministry of Finance, Planning, and Economic Development has been directed to follow a Request for Proposal (RFP) process, instead of an Expression of Interest (EOI) process, when selecting investors for economic activities in government-owned bungalows.
According to a list jointly prepared by the Presidential Secretariat, the Ministry of Public Administration, Provincial Councils and Local Government, and the Thimbirigasyaya Divisional Secretariat, 24 bungalows have been identified as suitable for economic use.
It has been decided to hand over these bungalows to the private sector for utilisation under a 30-year lease period, in line with the provisions of the State Lands Ordinance.
The list of bungalow prices submitted by the committee appointed by the Cabinet of Ministers stated that ownership of the land connected to the Stamford Crescent premises, identified as B63 in Colombo 5, could not be properly verified. As a result, it was decided not to include that premises in the RFP process and instead to establish the Public-Private Partnership Cooperation Institution at that location.
Investors selected through the RFP process must implement their investment proposals while preserving the archaeological value of the government bungalows and must not make structural changes without permission from the relevant department.
The committee investigating government bungalows is expected to submit its recommendations on presidential residences during a second stage. Since many presidential residences are located in outlying provinces, the decision was taken after considering the time required for special investigations.
The government has made a policy decision not to allocate ministerial bungalows to ministers. The President has also decided not to use presidential residences for personal use.
