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Private sector revival for Prez and VIP abodes

Private sector revival for Prez and VIP abodes

11 May 2025 | By Faizer Shaheid


Tucked behind high walls and colonial façades, Sri Lanka’s ministerial bungalows and presidential palaces once symbolised power, influence, and prestige. Today, many of these properties stand in eerie silence, unused, short of maintenance, and controversially, becoming potential health hazards.

As dengue fever surges in urban Sri Lanka, attention has turned to these largely forgotten properties, many of which have become overrun with vegetation, clogged drains, and stagnant water. The issue, however, is not merely about mosquito breeding; it speaks to a larger dilemma of poor asset management and bureaucratic inertia. However, the Government has signalled a turning point.


A Cabinet-backed revival plan


Speaking to The Sunday Morning, Ministry of Urban Development, Construction, and Housing Secretary Ranjith Ariyaratne laid out the scope of a proposal recently submitted to the Presidential Secretariat.

“According to the proposal we presented to the President through the Cabinet, we mentioned three things,” Ariyaratne explained. “Firstly, regarding the ministerial bungalows vested with the Ministry of Public Administration and how to make use of them. Secondly, the circuit bungalows under the Urban Development Authority (UDA). And thirdly, the abodes allocated to the President.”

A special inter-ministerial committee was appointed to study these holdings and submit an interim report. That report is now in the hands of President Anura Kumara Dissanayake. Decisions, Ariyaratne noted, were expected soon and may mark a shift in how the State perceives the use of high-value real estate.


From hubs of power to mosquito havens


At the heart of the issue are an estimated 35 ministerial bungalows located in Colombo, some in elite neighbourhoods such as Colombo 7. 

Many of these abodes had been left idle, especially after the Government made a policy decision to refrain from using them. Therefore, the inter-ministerial committee has recommended leasing out about 20 of the ministerial bungalows to the private sector.

Health officials have expressed concerns that such abandoned properties have become ideal breeding grounds for mosquitoes following a surge of dengue-related cases in Sri Lanka. 

Minister of Public Administration, Provincial Councils, and Local Government Prof. Chandana Abayarathna claimed that the Government had taken cognisance of the issue. “Officials from the Health Ministry are looking into the matter. I will personally be inquiring into these concerns very soon and action will be taken to remedy the situation,” he said.

Acknowledging the public concern, Ministry of Urban Development Secretary Ariyaratne assured that necessary steps were being taken. 

“We will be taking decisions on that matter soon. We hope to engage the private sector in these properties. The private sector too has shown abundant interest in acquiring these properties to utilise them for their business purposes. So the problem will be resolved very soon. The decision from the President is expected very soon,” he said.

Explaining the decision to engage the private sector, Ariyaratne said that the abodes would not be put up for sale. He emphasised that the solution lay not in selling these assets, but possibly in leasing them out. 

“We are strongly considering the prospects of these buildings being utilised by the private sector. For example, some properties in Colombo 7 may be ideal for coffee shops, while some may suit as locations for banks. Private entities have different purposes and the properties and locations also may well suit these needs,” he emphasised.


A private-public reimagining?


This emerging plan is in line with proposals to engage in Public-Private Partnerships (PPPs), rather than outright privatisation. Minister Abayarathna clarified the Government’s approach.

“There is a proposal to give them to the private sector, but we plan to engage in a PPP for these projects. We will be supporting such ventures,” he stated.

Responding to critics who view this direction as ideologically inconsistent with the Left-leaning Janatha Vimukthi Peramuna (JVP) stance, Abayarathna emphasised: “This Government is not a JVP government. This is a National People’s Power (NPP) Government. Nevertheless, our policy is to make the best use of resources in a manner that is beneficial to the country. 

“We are not a Government that neglects the private sector. The country also needs the private sector, so these bungalows may be in the hands of the private sector or the public sector, but whichever it is, it will be one where the properties are made use of to benefit the country in some way,” he asserted. 


The Kankesanthurai case 


Perhaps the most staggering example of State waste is the presidential palace in Kankesanthurai.

“They spent Rs. 3.6 billion to build the palace in Kankesanthurai,” Ariyaratne noted. “But until today, the palace has not been made use of. They have acquired exquisite furniture for the place, but now, owing to lack of maintenance and disuse, the property will have to be repaired before it can be used again.” 

Notably, the property has never been inhabited even once by a sitting president. Its future now lies either in the hands of the UDA or, more likely, the private sector under a PPP model. “Somebody has to invest in its repairs,” Ariyaratne added.


The case of the presidential bungalows


Beyond ministerial homes, the committee’s review includes nine presidential palaces, each representing a substantial maintenance burden on the public purse.

According to Ariyaratne, only the residences in Colombo, Kandy, and Anuradhapura are being considered for continued use. “The others don’t really serve much purpose. The President rarely visits these places. For example, the presidential palace in Nuwara Eliya is a huge property located adjacent to the golf course. It would in fact serve better as a hotel or an Army camp in the region.”

When questioned whether the remaining presidential palaces were being maintained, Ariyaratne replied in the affirmative. “Of course they are maintained. These are massive properties with dedicated staff to maintain them well. However, the President may not even visit them once a year. Therefore, maintaining these properties imposes a huge burden on the Treasury. They can be put to better use,” he said.

He added that decisions would be made quickly, given the President’s keenness to act decisively. 


The urban opportunity


In terms of economic logic, the repurposing of these properties makes sense. The proposal imagines coffee shops, boutique hotels, corporate offices, and even student hostels taking the place of decaying verandahs and unused parlours. But this will require a coordinated effort: zoning clearances, infrastructure upgrades, and a legal framework for leasing State property.

The Government, for its part, appears willing. “Not much time will be spent on making a decision,” Ariyaratne said. “Of course, these decisions are not vested in us, so we cannot give a timeline, but the President is very keen on the matter.”

Minister Abayarathna also confirmed the same. He said that the Government was currently preparing to engage in PPP projects in relation to these properties, adding that the final outcome would be revealed very soon upon confirmation from the President. 

Ministerial bungalows, presidential palaces, and some of the circuit bungalows vested with the UDA are likely being considered as a part of the proposal for properties to be leased out.




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