FINANCIAL CHRONICLE — The government of Sri Lanka is preparing to reissue Expressions of Interest (EOI) for the long-awaited Dedduwa Lake-Based Tourist Resort Development Project in Bentota, following the failure of previous investment proposals to meet financial criteria, as stated by Prime Minister Dr. Harini Amarasuriya during a parliamentary session.
This initiative seeks to convert 694.54 hectares of acquired inland land into a sustainable integrated lake resort, which will feature floating lodgings, water sports, nature-based activities, and agri-tourism initiatives aimed at enhancing the coastal tourism sector in Bentota.
Responding to inquiries in parliament, Prime Minister Amarasuriya noted that after issuing new EOIs and Requests for Proposals in 2026, a result of a canceled agreement in 2022, the bids received did not fulfill the necessary financial standards.
“While we received two proposals, neither investor was able to provide adequate financial documentation to demonstrate their required financial capacity; hence, the Development Proposal Evaluation Committee did not endorse any submissions,” Amarasuriya explained.
The process of land acquisition for this project commenced around 2005 and concluded in late 2017, with 1,068 landowners compensated a total of LKR 147.3 million, along with LKR 88.8 million in interest payments. The land has since been transferred to the Sri Lanka Tourism Development Authority (SLTDA).
Before launching new investment tenders, officials are focusing on enhancing infrastructure and managing land within the project area. The Bentota Divisional Secretariat has been assigned the task of acquiring an additional 27 to 30 acres to establish a main access road leading inland from Galle Road.
Prime Minister Amarasuriya informed the assembly that government agencies are currently tackling on-the-ground challenges to prepare the site for prospective investors.
“At present, the Sri Lanka Tourism Development Authority, along with the Bentota Divisional Secretariat and other relevant agencies, is working to define boundaries and address issues related to unauthorized land encroachments,” she added.
The government anticipates that the project will enhance national tourism revenue once a suitable investor is identified. (Colombo/Aug05/2026)
