Wednesday Jan 28, 2026
Wednesday, 28 January 2026 00:03 - - {{hitsCtrl.values.hits}}
The Cabinet has approved calling for investment proposals to lease State-owned land parcels for large-scale recreational developments in Battaramulla and Nuwara Eliya, as part of the Government’s urban and tourism development drive.
Accordingly, approval has been granted to invite investors through an international competitive bidding process, in line with Government procurement guidelines, to lease nine land plots along both banks of the Diyawanna Oya. The plots, identified by the Urban Development Authority, cover a total extent of 13.57 acres and will be allocated on a long-term lease basis for leisure and recreational projects.
The developments form part of the planned ‘Frolic Island Recreational Hub’, announced in 2024 under the Kaduwela Urban Development Plan, aimed at creating a public leisure and recreation zone in the Battaramulla area. Supporting infrastructure work has already been completed by the Sri Lanka Land Development Corporation, including flood prevention and waterway improvements in the Battaramulla wetland area around the Waters Edge Hotel.
In a separate decision, Cabinet has also approved calling for suitable investors to lease a land plot adjacent to Gregory Lake on Badulla Road, Nuwara Eliya, for a recreational project designed to attract foreign tourists. The UDA-owned land, measuring 10 acres, 3 roods and 28.04 perches, was identified by a Cabinet-appointed committee reviewing under-utilised State lands and will be offered on a 50-year lease through an international competitive bidding process.