The Hon. Anura Karunathilaka - Minister of Urban Development, Construction and Housing

¶ 01 (a) (i) Under the Colombo City Beautification Project (2013), the Urban Development Authority (UDA) removed about 883 unauthorized/illegal stalls around Olcott Mawatha. After identifying parties operating with the Colombo Municipal Council’s administrative oversight, in 2014 the UDA provided relocation facilities at the Bastian Mawatha “Floating Market” according to the nature of prior businesses and premises. (ii) The UDA spent about Rs. 312 million in 2013 to build the Floating Market and about Rs. 40 million in 2021 for renovations. After renovations, 87 shops and 5 restaurants exist. Relocated traders, and those selected by tenders or direct allocation, largely engaged in traditional, not tourist-oriented, businesses; due to project failure and inability to attract tourists, many faced difficulties paying rents and deposits. Overall, the project is unsuccessful both for traders and the UDA. (iii) The project aimed primarily to clear Olcott Mawatha and surroundings to implement the Pettah Multimodal Transport Hub and related projects, while offering alternative trading space. However, as those projects have not proceeded, the freed lands have been reoccupied illegally by other parties (not the original traders). With limited opportunities at the Floating Market, relocated traders have, at various times, requested to return to their previous locations. (iv) Given the original purpose (clearing for Pettah Multimodal Transport Hub and related works), decisions on restoring previous premises and addressing current occupants should follow an updated plan and proper study by the UDA. That is the UDA’s position. (v) Various alternatives are under consideration. Data indicate limited incomes and high trader losses; UDA, too, has incurred losses: in 2020, maintenance cost Rs. 23.8 million vs income Rs. 5.94 million (loss Rs. 17.8 million); in 2021, income Rs. 3.18 million vs maintenance Rs. 36.38 million (loss Rs. 33.1 million); in 2022, income Rs. 7.06 million vs maintenance Rs. 14.65 million (loss Rs. 7.5 million). We are exploring alternative concepts that minimize losses and provide fairness to existing traders—offering opportunities within a redesigned theme and, where not possible, alternative trading spaces in Pettah.

¶ 02 (b) Not applicable.