The Urban Development Authority (UDA) of Sri Lanka is breathing new life into the struggling Bastian Road floating market in Colombo through a public-private partnership (PPP) with a Japanese investor.
The agreement, signed yesterday under the chairmanship of Nimesh Herath, brings Akita Hirose on board for a 30-year commitment. This marks a significant development for the market, initially launched in 2014 under UDA Secretary Gotabaya Rajapaksa with an ambitious vision.
Conceived as a vibrant attraction during Colombo’s beautification program, the project aimed for a 50% return on investment (ROI) within five years. However, plagued by various issues, the market failed to take off. Nearly half of the initial 92 shop owners closed their businesses due to the project’s lack of viability. Even a reinvested Rs. 25 million by President Gotabaya Rajapaksa during his term couldn’t revive the market. The deteriorating infrastructure, unpleasant odors from the surrounding lake, and a general lack of appeal discouraged both investors and visitors, leaving the area an eyesore for the city.
“Given the current economic constraints,” explained Herath, “it was challenging to develop this project solely with UDA funds. Therefore, we were tasked with finding an investor, and we’re confident Mr. Hirose is the right partner.”
The vision for the revamped market is a major transformation. Gone will be the struggling shops; instead, a vibrant tourist destination with entertainment options is planned. This exciting project is expected to be completed by the end of 2024.