Global Leasing’s Exit Sparks Questions on Colombo Land Policy

The cancellation of Global Leasing Limited’s lease for prime land on Perahera Mawatha has exposed broader uncertainties in Colombo’s urban development policies. The land, Assessment No. 135, was initially earmarked for a mixed-use project including residential, commercial, and hospitality components but was reclaimed after the investor reportedly failed to meet conditions set in the lease agreement.

Global Leasing Limited is no stranger to large-scale urban projects. The firm has previously executed residential towers, mixed-use complexes, and commercial developments under past administrations, often benefiting from long-term lease agreements and state support. However, despite its prior successes, the company could not progress the Kollupitiya project, leading to its lease being terminated by the Standing Negotiations Committee.

Officials have not publicly disclosed the precise reasons behind the lease cancellation, leaving industry observers to speculate whether delays in approvals, financing challenges, or strategic government changes contributed. The lack of clarity has prompted calls for improved transparency, especially in high-value land allocations.

In September 2025, the UDA Board authorised a new call for proposals, now supported by a cabinet-appointed committee. The revised tender prioritises hotel or commercial use, while allowing up to 50 percent of the land for residential development. The 99-year lease will follow the International Competitive Procurement process, based on the Government Chief Assessor’s valuation.

Urban Development Minister Bimal Rathnayake emphasised that the re-tender aims to attract credible investors capable of executing a bankable project in one of Colombo’s most prime locations. Yet critics argue that repeated cancellations without clear explanation may discourage foreign and domestic investment.

As Colombo competes for high-value development, the handling of Assessment No. 135 may serve as a test of the government’s ability to combine contractual enforcement with investor confidence and urban planning priorities.