UDA to lease Pettah Floating Market to Japanese investor for $ 160 m

Thursday, 27 November 2025 06:07 - - {{hitsCtrl.values.hits}}

The Urban Development Authority (UDA) is moving ahead with plans to lease the Pettah Floating Market Complex to a Japanese investor in a deal valued at $ 160 million.

The investor intends to refurbish the retail outlets and revive the night-market concept, with the complex to be handed over on an as-is basis. Talks are under way on compensation for existing shop-holders. The UDA has already received an initial payment of $ 16 million.

The Floating Market was developed in 2014 under the Mahinda Rajapaksa administration at a cost of Rs. 344 million. The six-acre site contains 92 shops, including two large restaurants, with 10 units built over the Beira Lake. The UDA carried out additional work worth Rs. 50 million in 2021.

Low footfall during the pandemic and the subsequent economic downturn pushed the complex into losses. The project’s original intent to draw tourists and promote handicrafts and traditional foods was diluted after street vendors were allowed to operate within the premises.

The market has seen little maintenance for more than two years. Under the proposed lease, the Japanese investor is expected to undertake a full upgrade of the facility.

Meanwhile, the UDA has spent Rs. 14.9 million on producing a 20-second promotional advertisement.