The town of Dehiwala has seen rapid industrialisation and urbanisation in recent years. Located on the border to Colombo, the cheaper land has resulted in a real estate boom with hyper-markets, department stores and apartment complexes dotting its skyline. There are also many housing schemes surrounding the wild-life inhabited Attidiya Lake further inland – one of these is Lotus Grove which is also reported to be the first enclosed complex of its kind in the country. Dehiwala during recent years have become an attractive location for holiday accommodation facilities for both business travelers and holiday makers as a result of its close proximity to Colombo and Mount Lavinia beach.
The town has also suffered extensive pollution as a result of uncontrolled growth and heavy congestion. Road expansion has been futile and the consideration of over-head roads and Colombo Metro Skytrain line are currently underway to ease the problem.