Colombo’s evolving retail landscape: Void in the suburbs, vision for Rajagiriya

In the last few decades, Colombo’s skyline has been steadily reshaped by the rise of shopping malls, architectural symbols of economic aspiration, and urban transformation. From the modest beginnings of Liberty Plaza in the 1980s to the ambitious scale of One Galle Face, Colombo City Center and Cinnamon Life, malls have become embedded in the fabric of city life, redefining how Sri Lankans shop, socialise, and even perceive public space.

Beyond lifestyle shifts, the economic impact of these developments has been substantial. Retail malls have acted as magnets for global and local brands, pushed up surrounding land values, and transformed underutilised urban pockets into high-demand commercial zones. They’ve also generated thousands of jobs and drawn in tourism and leisure spending, feeding Colombo’s growing image as a garden city and modern South Asian capital.

An uneven retail map

Even though Colombo’s city centre enjoys the benefits of these retail ecosystems, the city’s suburban zones tell a different story. Despite surging residential growth and rising property prices, Colombo’s outer zones, including Colombo 7, 8 and particularly Rajagiriya, remain noticeably underserved when it comes to formal mall developments. Analysis of available mall space reveals a heavy concentration in Colombo 2 through 4, which together account for over 1.6 million square feet of retail supply, both existing and upcoming. Meanwhile, areas like Colombo 5 offer only a single major mall, and Colombo 8 and 10 lack any such infrastructure altogether. Even Colombo 7, despite being an affluent and centrally located area, is awaiting its first major mall development with the ODEL Mall in 2027.

Among the most significant gaps is Rajagiriya, a suburb that sits at the crossroads of Colombo’s administrative and residential corridors. Its location, demographics, and connectivity have made it one of the most sought-after residential zones in recent years. Yet, despite this status and growing population density, Rajagiriya remains without a single comprehensive shopping mall.

A timely entry into an underserved market

That is now set to change. In what urban planners are calling “a timely and strategic intervention”, the first luxury retail mall in Rajagiriya is currently under development. The project is being led by Baili Investments, a BOI-registered firm backed by a Hong Kong-based investor with cross-sector expertise spanning Asia. Drawing on operational models and technologies from Hong Kong, Mainland China, and Singapore, the venture aims to introduce a new standard of mall experience to Sri Lanka.

This project by Baili Investments spans approximately 225,000 square feet across three floors. The mall will feature a cinema complex, high-end international and local retail brands, restaurants, and dedicated entertainment zones for children. More than a shopping destination, the developers say, it will redefine how suburban consumers interact with retail and leisure spaces, introducing a new way of operating malls in Colombo, with curated experiences and smart urban integration. Apart from this, the retail mall complements the Baili Investments’ upcoming apartment project of 1,062 units.

While the project is still in its construction phase, its broader implications are already being recognised. By bringing a fully integrated retail destination to Rajagiriya, the development addresses a long-standing void in the area’s urban infrastructure. 

Approximately 1,745 luxury apartment units are currently within a closer radius of the upcoming mall (2.5km). This development will immediately enhance the lifestyle of these residents, who would otherwise need to travel to Colombo for shopping or watching a movie. The appeal of these apartments, along with their overall capital gains, is expected to increase significantly. Moreover, it is expected to enhance both property values and resident convenience while also drawing footfall from surrounding suburbs like Nawala, Ethul Kotte, and Borella.

In a city where commercial development has historically prioritised the core, this project represents a shift in the decentralisation of retail luxury that meets Colombo’s evolving demographic needs. For Rajagiriya, it may mark not just the arrival of a mall but the beginning of a new chapter in its urban story.