Steering committee proposed to oversee allocation for investment projects and diplomatic use
By The Pulseline News Desk
The government is preparing to take a key decision on the future use of dozens of former ministerial bungalows in Colombo, many of which have remained vacant for years following the abolition of ministerial housing privileges under recent governance reforms.
The Ministry of Finance has sought Cabinet approval to appoint a Steering Committee to oversee the allocation of these properties for investment projects, embassy residences, and other official purposes, according to ministry sources.
The move comes amid growing concerns over the condition of the properties, with officials warning that prolonged abandonment could result in substantial deterioration and increased maintenance costs for the state.
A ministry spokesperson said the proposed committee would be tasked with ensuring the transparent and efficient allocation of the properties while maximizing their economic and public value.
Valuable state assets lying idle
According to government officials, 25 large ministerial bungalows located in prime areas of Colombo remain unoccupied despite possessing extensive facilities and significant commercial potential.
Sources familiar with the matter said many of the properties have been closed for an extended period, leading to gradual deterioration. Experts warn that if the buildings continue to remain unused, restoration costs could increase significantly in the future.
The issue has drawn attention at a time when the government is seeking to improve the management of state assets and generate greater economic returns from underutilized public property.
New plan for productive use
A senior Finance Ministry official said current plans envisage allocating 16 of the bungalows to investment projects that are expected to generate economic activity and employment opportunities.
The remaining nine properties are proposed to be assigned for diplomatic missions, embassy residences, and other government or institutional office requirements.
Officials believe the initiative could reduce the burden of maintaining vacant properties while simultaneously supporting investment promotion efforts and strengthening diplomatic infrastructure.
From ministerial residences to public assets
For decades, ministerial bungalows in Colombo formed part of the privileges afforded to cabinet ministers and senior government officials. Many of the residences occupy highly sought-after locations and were maintained using public funds.
However, following political reforms and changing attitudes toward state expenditure, a number of these residences were vacated and returned to government control. Since then, questions have persisted regarding their future use and whether they should continue to remain idle.
Successive administrations have considered various options, including converting some properties into public institutions, leasing them to investors, or using them for diplomatic purposes. Yet implementation has often been delayed by administrative, legal, and policy considerations.
The latest proposal by the Finance Ministry appears to be part of a broader effort to ensure that state-owned assets contribute to economic growth rather than becoming liabilities. Officials say the Steering Committee mechanism is intended to establish a structured process for evaluating proposals and determining the most suitable use for each property.
Balancing preservation and economic value
Policy analysts note that the challenge facing the government is twofold: preserving valuable public assets while ensuring they generate meaningful economic and social returns.
With Colombo’s commercial property values remaining among the highest in the country, the former ministerial bungalows represent potentially significant assets that could attract investors, support diplomatic engagement, or accommodate public institutions.
The government’s final decision, expected following Cabinet consideration, could determine whether these long-vacant properties become engines of investment and employment or continue to remain underutilised state assets.
Leave a comment