Govt to revive stalled mega developments in Colombo in Q1

The Government yesterday announced plans to restart long-stalled mega mixed-development projects and abandoned high-rise buildings in Colombo by the end of first quarter.

Addressing a media briefing, Housing, Construction and Water Supply Deputy Minister T.B. Sarath yesterday said this renewed push aims to unlock idle assets and revive urban development delayed by irregularities, financial misappropriations, and the economic crisis.

“We have already held multiple consultations with contractors and relevant stakeholders, and have appointed a Ministerial Consultative Committee with the participation of the Urban Development Authority (UDA) and the National Housing Development Authority (NHDA) to fast-track the process,” he added.

The Deputy Minister said many of the projects were initiated decades ago, and following the economic crisis, the cost structures now require reassessment and renegotiation. 

“Despite these challenges, the Government expects most of the stalled developments to be restarted by March,” Sarath stressed.

Housing, Construction and Water Supply Ministry Secretary Eng. Kumudu Lal Bogahawatta said the projects under review include high-profile private sector developments, notably the Indian-invested Krrish project in Colombo Fort and the Pakistan-backed Destiny residential and shopping complex in Kompannavidiya, Colombo 2.

He revealed that 11 new construction projects were identified in 2025, but only six have commenced so far, while five projects planned under Public-Private Partnership (PPP) arrangements are yet to begin. “These projects are currently awaiting Cabinet approval of revised cost estimates before reconstruction can commence,” he said.

NHDA Chairman Aravinda Srinatha said all unfinished projects are covered by formal agreements with the Government, and assured that they would be completed through a coordinated, multi-agency effort involving both public and private stakeholders.

Source : DailyFT