The Urban Development Authority (UDA) is reported to be preparing to lease the Pettah Floating Market to a Japanese investor for USD 160 million, it is reported.
According to reports, the investor plans to renovate the shops and the night market within the complex under the current arrangement.
Discussions are still ongoing regarding compensation for the current shop owners.
It is also stated that the investor has already paid USD 16 million to the Urban Development Authority.
Former Urban Development Minister Anura Karunathilaka had met this investor during his tenure, and yesterday (25), senior UDA officials held a special discussion regarding the leasing.
The Pettah Floating Market was originally built in 2014 by the Mahinda Rajapaksa government at a cost of Rs. 344 million. It contains 92 shops, along with two large restaurants. Of these, 10 shops are located on Beira Lake.
In 2021, the UDA incurred an additional expenditure of Rs. 50 million. Due to reduced trade during the COVID-19 pandemic and the economic crisis, the floating market suffered losses, resulting in significant financial damage.
Although it was initially planned to attract tourists and sell local crafts and traditional food, when street vendors were allowed to operate there, attention to the project was lost.
Having operated for more than two years without maintenance, the Japanese investor now expects to completely renovate the market under a new plan.
It is also reported that the UDA has spent Rs. 14.9 million to produce a 20‑second promotional advertisement using a foreign announcer. (Newswire)