3 weeks ago
Sri Lanka leases former ministerial bungalows to private investors
Sri Lanka has some big houses in a fancy part of Colombo called Cinnamon Gardens.
These houses used to be homes for government ministers.
The new government decided not to give ministers these houses anymore.
So the houses were left empty.
The government wants businesses to use them instead.
Businesses can rent these houses for 30 years.
They could turn them into hotels, cafes, or restaurants.
The government will still own the land and the buildings.
This way, the country can make money from the properties and save money by not spending on ministers' homes.
Sri Lanka will lease six former ministerial bungalows in Colombo on 30-year leases to private investors.
The bungalows, located in the Cinnamon Gardens residential area, may be used for tourism, boutique hotels, cafes, and restaurants.
The Ministry of Finance said the move aims to unlock the economic potential of state-owned bungalow properties through private sector investment.
Ownership of the land and buildings will remain with the Sri Lankan government, while investors must obtain all requirements for their ventures.
The NPP government, which pledged to cut waste ahead of the 2024 presidential election, does not provide its ministers official bungalows, leaving the properties vacant.
- Who
- Sri Lanka's Ministry of Finance and the National People's Power (NPP) government, along with prospective private investors
- What
- Announced a plan to lease six former ministerial bungalows in Colombo on 30-year leases for commercial uses such as boutique hotels, cafes, and restaurants
- Where
- Cinnamon Gardens, a residential area of Colombo, Sri Lanka
- When
- The decision was made on Monday, with the Ministry of Finance statement released on Tuesday; the exact date was not specified in the article
- Why
- To turn state-owned properties into income-producing ventures and cut government waste by minimizing expenditure on maintaining politicians
Key facts
- Bungalows offered
- 6
- Lease term
- 30 years
- Location
- Cinnamon Gardens, Colombo, Sri Lanka
- Permitted uses
- Tourism, boutique hotels, cafes, restaurants
- Ownership
- Land and buildings remain vested in the government
- Announcing body
- Ministry of Finance
- Policy context
- NPP pledged to slash state expenditure on politicians ahead of the 2024 presidential election
Sources
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