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UDA Advances Lease of Pettah Floating Market to Japanese Investor
27 Nov, 2025
The Urban Development Authority (UDA) is proceeding with plans to lease the Pettah Floating Market Complex to a Japanese investor under a proposed agreement valued at USD 160 million. The investor is expected to refurbish the retail spaces and reinstate the night-market concept, with the complex to be transferred in its current condition. Discussions are ongoing regarding compensation arrangements for existing shop-holders. An initial payment of USD 16 million has already been received by the UDA.
The Pettah Floating Market, developed in 2014 during the Mahinda Rajapaksa administration at a cost of Rs. 344 million, spans six acres and comprises 92 shops, including two large restaurants. Ten of these units are constructed over the Beira Lake. In 2021, the UDA undertook additional works valued at Rs. 50 million.
The complex experienced significantly reduced footfall during the pandemic, and the subsequent economic downturn further contributed to operational losses. The project’s original objective, to attract tourists and promote handicrafts and traditional foods, was weakened when street vendors were permitted to operate within the premises.
The facility has received minimal maintenance over the past two years. Under the proposed lease agreement, the Japanese investor is expected to carry out a comprehensive upgrade of the complex. Separately, the UDA has incurred Rs. 14.9 million to produce a 20-second promotional advertisement.
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