Nearly two decades after land acquisition began, Sri Lanka’s ambitious Dedduwa Lake-Based Tourist Resort Development Project remains trapped between government plans and investor uncertainty, with the latest proposals collapsing over financial credibility concerns.
Prime Minister Dr. Harini Amarasuriya informed Parliament yesterday that the Government would once again reopen the call for Expressions of Interest after two investors failed to meet the financial requirements set by the Development Proposal Evaluation Committee.
The setback represents another hurdle for a project designed to reshape Bentota’s tourism landscape by creating a major inland destination connected to the region’s coastal tourism industry.
According to the Prime Minister, the two proposals received after the 2026 invitation for EOIs and RFPs were not recommended because the investors did not submit sufficient financial evidence to prove they possessed the required capacity to develop the project.
The failure of the proposals comes after years of government involvement, including a lengthy land acquisition process that began in 2005 and concluded in 2017.
During that period, the State acquired 694.54 hectares of inland property for the proposed development. Compensation payments reached Rs. 147.3 million for 1,068 landowners, while another Rs. 88.8 million was paid as interest. The lands were subsequently vested with the SLTDA for tourism development purposes.
Despite the availability of land, attracting a suitable investor has remained a major challenge. A previous investment agreement was cancelled in 2022, forcing authorities to restart the project search.
The proposed resort is expected to introduce a different tourism model for Bentota, focusing on lake-based recreation, floating accommodation, water activities, environmental experiences, and agricultural tourism. Supporters argue the project could extend visitor stays and create new economic opportunities for surrounding communities.
However, before another investor enters the picture, authorities are attempting to resolve infrastructure and land-related obstacles.
The Bentota Divisional Secretariat is currently working on acquiring an additional 27 to 30 acres required to construct an access road from Galle Road to the development site. At the same time, the SLTDA and relevant agencies are mapping boundaries and addressing alleged unauthorised encroachments within the project area.
The Government’s renewed search for investors highlights a wider challenge facing large-scale tourism projects: securing developers with both the financial capacity and long-term commitment needed to complete complex developments.
With land secured and preliminary groundwork underway, the Dedduwa project still carries the potential to become a landmark tourism venture. But after repeated delays, cancelled agreements, and failed proposals, Bentota’s promised lake resort remains a test of whether vision, planning, and investment can finally come together.
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