The Urban Development Authority (UDA) is yet to receive any recommendations from the Presidential Secretariat or the Cabinet to move forward with development plans for the historic Visumpaya residence in Colombo, The Sunday Morning learns.

UDA Deputy Director General Real Estate and Land Management E.A.C Piyashantha told The Sunday Morning that the authority was awaiting approval from the appointed high-level committee with regard to further initiatives in developing Visumpaya.

Following a Cabinet decision, a proposal detailing the developmental initiatives of several bungalows across the country – including Visumpaya – had been submitted to a high-level committee.

This decision had been taken in the light of the suspension of the high-end boutique hotel project as the previous Japanese investor had not found the project financially feasible and refused to move forward. 

As such, the previous Memorandum of Understanding (MOU) had lapsed, leaving the Visumpaya project at a standstill.

In January 2024, the MOU between Azotels Hospitality Ltd. (the Japanese investor of the project), Hunas Holdings (the local partner), and the UDA, which was initially valid until 7 January this year, was extended by three months.

The extension had been granted due to a disparity in the valuations presented by the Government and the investor, with some reports noting that the Government’s appraisal of the project was twice as high as the valuation conducted by the latter.

As per the previously proposed project, the Visumpaya building was to be turned into a high-end hotel.

Based on the economic situation of the country, the aim was to develop such ancient buildings through Public-Private Partnerships (PPPs) without spending UDA monies. 

The property was to be developed as an eco-friendly high-end boutique hotel with luxury rooms, common areas, and restaurants to accommodate high-end tourists.

According to Piyashantha, the proposal details the development of Visumpaya in a manner similar to the previous high-end boutique hotel project, attributing the initiative to preserving the residence’s architectural and historical character. 

The proposal also details steps to repurpose a number of bungalows previously used by ministers as well as several ‘presidential palaces.’

However, he said that the authority was yet to receive any recommendations from the Presidential Secretariat or the Cabinet to proceed with the matter.

“We are not in a position to initiate a Request for Proposal (RFP) at this stage. Since the committee is still in the process of analysis and investigation, it is premature to follow up on the procedure,” he added.

Piyashantha noted that further instructions as well as the decision to move forward with these developments would be received by the UDA in the near future.

The revival of the old colonial mansion, which housed former State officials and dignitaries, into a boutique hotel is part of the ‘New Colombo Heritage City Plan’ proposed by the Urban Development and Housing Ministry in order to attract foreign investments into the country, on the heels of the foreign exchange crisis. 

The plan aims to lease out historical buildings for development under PPPs.

The building, initially known as Acland House, was used as a hostel for officers of the Ceylon Rifle Regiment for a long period of time.