The Urban Development Authority (UDA) is set to lease the Pettah Floating Market Complex to a Japanese investor for US$160 million.
The investor plans to modernize the shops and night market at the complex, which will be leased in its current condition. Discussions are ongoing regarding compensation for existing shop owners. The investor has already paid US$16 million to the UDA.
Former Minister of Urban Development, Dr. Anura Karunathilaka, met with the investor during his tenure, and yesterday (25), senior UDA officials held a special meeting to discuss the lease.
The Pettah Floating Market was originally constructed by the Mahinda Rajapaksa government in 2014 at a cost of Rs. 344 million. Covering six acres, the complex houses 92 shops, including two large restaurants, with 10 shops located on Beira Lake. The UDA spent an additional Rs. 50 million on the project in 2021.
The market faced challenges due to low trade during the COVID-19 pandemic and the country’s economic crisis, leading to significant losses. Originally intended to attract tourists and promote local handicrafts and traditional foods, the project lost its focus when street vendors were allowed to operate there.
Having operated without proper maintenance for over two years, the market is now slated for a full modernization under the Japanese investor’s new plan. The UDA has also spent Rs. 14.9 million on a 20-second promotional advertisement featuring a foreign announcer.
