Sri Lanka’s Cabinet has approved a proposal to call for expressions of interest (EOIs) to develop the historic Bogambara Prison site in Kandy for tourism-related purposes, government spokesperson Minister Nalinda Jayatissa announced at a press briefing.
The initiative is part of a broader push by the Urban Development Authority (UDA), which has identified the former prison premises — recognized under the World Heritage Conservation Act — as having high potential for tourism, cultural, and entertainment activities.
“Expressions of interest will be invited for a 50-year lease to develop the site, respecting its cultural and historical significance,” Jayatissa said, adding that the government envisions the transformation of the landmark into a vibrant public space that blends heritage with modern attractions.
Previously restored by the UDA, the Bogambara Prison had once been proposed for sale to the Dalada Maligawa at cost. However, the current administration now sees it as a key site for sustainable, tourism-driven development.
In parallel, Sri Lanka is moving forward with strengthening its framework for public-private partnerships (PPPs). Jayatissa confirmed that Cabinet has granted in-principle approval to set up a dedicated PPP unit under the Office of the President. This unit will carry out preparatory work and coordinate relevant activities until a comprehensive PPP law is enacted, in line with recent budget proposals.
Investor interest in Sri Lanka’s public assets has been growing, the minister noted. Last week, the Cabinet approved the resumption of share sales in Canwill Holdings, the state-owned company behind the partially completed Grand Hyatt Hotel in Colombo.
As part of the PPP restructuring, the National Agency for Public Private Partnership (NAPPP), currently operating under the Ministry of Finance, will be discontinued. The NAPPP had been established following the Interim Budget of 2022.
In another major step toward infrastructure reform, Sri Lanka is preparing to launch its first PPP in the water sector, with the National Water Supply and Drainage Board (NWSDB) and the Ministry of Urban Development targeting a dramatic reduction in non-revenue water in Galle.
The project, supported by the Asian Development Bank (ADB), will involve a private partner financing and implementing infrastructure upgrades, including pipe replacements and metering systems. Payments to the private partner will be performance-based, tied to measurable reductions in water loss.
“High levels of non-revenue water remain a serious challenge to water utilities across Asia and the Pacific,” said Takafumi Kadono, ADB Country Director for Sri Lanka. “This project represents a pioneering step for Sri Lanka in using PPPs to strengthen the efficiency, resilience, and sustainability of its water sector.”
The developments reflect a growing emphasis by the government on leveraging private sector expertise and investment to modernize public infrastructure while preserving cultural heritage and ensuring sustainable growth.
