Tourism Ministry aims to align public property leases with market value amid scrutiny over undervalued deals
The Sri Lankan government is set to reassess the lease rates of state-owned properties that have long been offered at significantly below-market prices, according to Tourism Deputy Minister Prof. Ruwan Ranasinghe.
Speaking during a parliamentary session on Friday (May 9), Ranasinghe addressed concerns raised by Member of Parliament Dinindu Saman Hennayake, who highlighted a case involving a government-owned bungalow in Mahiyanganaya. The property, reportedly valued at Rs. 10 million, is currently being leased for just Rs. 36,000—a figure far below local market standards.
“In Mahiyanganaya, the going rent for a basic 10-by-10 storefront is around Rs. 50,000,” Hennayake said. “Recovering a Rs. 10 million investment with a lease payment of Rs. 36,000 would take over two decades. This appears to be yet another instance of politically influenced leasing.”
In response, Minister Ranasinghe acknowledged that a majority of government properties had been leased on similar favourable terms. He stated that the Ministry of Tourism, in collaboration with the Valuation Department, is now working to re-evaluate and revise these rates to reflect competitive market prices.
Ranasinghe defended the original intention behind such leases, noting that the Mahiyanganaya property was developed to support local tourism by offering affordable accommodation. “This isn’t an isolated case,” he said. “We are aware of the broader issue, and action will be taken across the board.”
This move comes at a time when the government has allocated Rs. 425 billion for capital projects and Rs. 1,000 billion for recurrent expenses in 2025, signaling a strong emphasis on better asset management under the new NPP government.