The government will re-call Expressions of Interest for the long-delayed Dedduwa Lake-Based Tourist Resort Development Project in Bentota after the last round of investment proposals failed to clear financial evaluation, Prime Minister Harini Amarasuriya told Parliament on Wednesday.
Responding to questions in the House, Amarasuriya said Expressions of Interest and Requests for Proposals were re-invited in 2026 following the collapse of a 2022 deal, but the bids that came in did not meet financial requirements.
“Although two proposals were received, neither investor submitted sufficient financial proof to confirm the required financial capacity; therefore, the Development Proposal Evaluation Committee did not recommend any proposal,” she said.
The project envisages converting 694.54 hectares of acquired inland territory into an eco-friendly integrated lake resort, with floating accommodation, water sports, nature activities and agri-tourism programmes intended to broaden Bentota’s tourism economy beyond its coastal strip.
Land acquisition for the site began around 2005 and concluded in late 2017. A total of 1,068 landowners received Rs. 147.3 million in compensation along with Rs. 88.8 million in interest payments, and the land has since been vested with the Sri Lanka Tourism Development Authority.
Before fresh tenders are floated, the government is prioritising infrastructure and land management in the project zone. The Bentota Divisional Secretariat has been tasked with acquiring a further 27 to 30 acres to build a dedicated main access road running inland from the Galle Road.
“Currently, the Sri Lanka Tourism Development Authority, together with the Bentota Divisional Secretariat and other relevant institutions, is working to demarcate boundaries and resolve issues related to unauthorised land encroachments,” the Prime Minister said.
The government expects the project to add to national tourism revenue once a suitable investor is selected.
Source: EconomyNext.
