The Urban Development Authority (UDA) is preparing to lease the Pettah Floating Market to a Japanese investor for US$160 million, with plans to modernize the shopping complex, including its shops and night market. The lease will be granted in the market’s current condition.
Discussions are currently underway regarding compensation for existing shop owners.
The investor has already made an initial payment of US$16 million to the UDA. Former Urban Development Minister Dr. Anura Karunathilake met with the investor during his tenure. Senior UDA officials held a special meeting on the matter yesterday (25).
Background of the Floating Market
The Pettah Floating Market was constructed in 2014 under the Mahinda Rajapaksa administration at a cost of Rs. 344 million.
The six-acre complex includes 92 shops, two large restaurants, and 10 shops situated on the Beira Lake.
In 2021, the UDA earned Rs. 50 million from the facility.
However, the market later faced financial difficulties, incurring significant losses due to the downturn in business caused by the COVID-19 pandemic and the subsequent economic crisis. Although it was originally designed to attract tourists and promote local handicrafts and traditional food, the project lost focus when street vendors were allowed to operate within the premises.
The market has reportedly been operating without maintenance for more than two years.
New Development Plan
Under the proposed agreement, the Japanese investor is expected to implement a comprehensive modernization plan for the entire complex.
Separately, the UDA has spent Rs. 14.9 million to produce a 20-second promotional advertisement featuring a foreign announcer.
