Southern Expressway Service Area Lease given for just Rs. 10,000!
A startling revelation in Parliament has cast fresh scrutiny over the lease of the Southern Expressway’s only rest area, “Canowin Arcade,” during the Rajapaksa administration.
Minister of Transport, Highways, Ports and Civil Aviation Bimal Ratnayake disclosed recently that this facility at Welipenna had been leased on a 99-year agreement for a pittance amount of Rs. 10,000, raising serious concerns over transparency and public asset management.
Sri Lanka Insurance Corporation (SLIC) subsidiary Canowin Hotels & Spas (Pvt) Ltd has got the contract on a 99-year lease, to develop and manage rest areas on the Southern Expressway following a cabinet approval in March 22 2012,
Cabinet approved this move based on a proposal made by then President Mahinda Rajapaksa, as the Minister of Ports and Highways.
The service area, which includes food courts, restrooms, fuel stations, and retail outlets, plays a key role in serving commuters on Sri Lanka’s longest expressway. Despite its commercial potential, the lease deal — reportedly executed for a nominal amount — has come under fire, especially given its unusually long duration.
The SLIC-owned company is responsible for managing the Canowin Arcade service area, ensuring its smooth operation and maintenance.
This implies that control and ownership of the asset technically still belonged in the public sector, although it was operated through a corporate entity.
Several critics argue that even if the lessee is a state-owned company, the terms of the lease — including the symbolic Rs. 10,000 fee — suggest poor governance and raise questions about whether the state has received fair value for a high-traffic commercial property.
“The public needs to know how a 99-year lease of a vital asset can be granted for the price of a single meal. This has nothing to do with privatisation; it’s all about accountability,” Minister Ratnayake added during a recent parliament session. The deal was mooted by President Rajapaksa, who was leading the development and the initiation of the implementation of the Southern Expressway project. During that time, “Canowin Arcade” was promoted as a contemporary service complex supplementing the country’s transport sector. This episode has reignited broader concerns about how public assets were managed and allocated under past regimes. Although Canowin Hotels remains under government ownership, lawmakers are now calling for a full audit of the lease terms, operational performance, and the rationale for a century-long concession. As Sri Lanka faces ongoing fiscal challenges, transparency in state asset utilisation — even among state-owned enterprises — has become a central issue in governance reform efforts.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!