Government Revives Long-Stalled Beira Lake Development Dream

After years of false starts and abandoned deals, the Government has launched a renewed effort to attract investors for a landmark mixed development project on a prime property at No. 40, D.R. Wijewardena Mawatha, Colombo 10, overlooking the Beira Lake.

The three-rood, 13.85-perch plot owned by the Urban Development Authority (UDA) has been opened for investment proposals on a 99-year lease, marking yet another bid to turn this central site into a vibrant commercial and leisure hub.

Approved by the Cabinet, the move is part of a broader plan to transform the Beira Lake region into a thriving district of high-rise developments, waterfront promenades, and cultural zones. UDA officials said proposals will be entertained for hotels, shopping malls, convention centres, and recreation facilities.

Plans include green corridors, a linear park stretching six to twelve metres, and spaces for children’s play areas and water-based leisure activities.

However, the project faces significant practical hurdles. The site is still occupied by several state institutions, including the Excise Department, CWE warehouses, and CW Mackie PLC.

These must be relocated before any construction begins. Additionally, while over 320 unauthorized settlements near the Gangarama Temple have already been removed, another 1,000 families await resettlement as part of the area’s clearing process.

Despite these obstacles, officials note that the site’s strong infrastructure and central location close to the Colombo Port, Fort railway station, schools, and financial centres make it an attractive investment. The UDA is offering flexible payment terms, combining upfront and installment options based on valuations from the Government Chief Valuer.

Still, the project carries the weight of its chequered past. A US$200 million luxury resort proposed by Queensbury Leisure Ltd. was cancelled in 2017 after failing to commence within the stipulated period, while Japan’s Belluna Co. Ltd. and Asia Capital withdrew their Rs. 4 billion investment in 2022 amid liquidity concerns.

Officials remain cautiously optimistic. “The potential to reshape Colombo’s skyline is immense,” one senior UDA source said. “But only consistent policy and investor confidence will determine whether this vision finally becomes reality.”