Govt accuses opposition of blocking Galle Face Land sale

With the Cabinet having approved the 99-year lease on seven acres of prime land near the Galle Face Green to the China National Aero-Technology and Export-Import Corporation (CATIC), the government valuer has been directed to work out the lease payments, Economic Development Deputy Minister Lakshman Yapa Abeywardana said yesterday. 

He accused the main opposition United National Party (UNP) and the Janatha Vimukthi Peramuna (JVP) of having compelled the government to change its earlier decision to sell the property outright at US$ 94.5 million or at nearly Rs.10 billion and thus having to forego the direct receipt of foreign exchange.

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(Source: Daily Mirror)

Asia Capital's leisure arm to add Wadduwa, Balapitiya beach hotels, 50 rooms

Asia Leisure's, plans to add two new beach properties, one in Wadduwa and the other in Balapitiya, over the next seven to eight months, which will add about 50 more rooms to the company's existing portfolio of hotels, which presently encompasses boutique hotel properties in Nuwara Eliya, Colombo, Balapitiya and Galle.

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(Source: Sunday Times)

South Asia’s biggest construction fair in Colombo next year

Construction Expo 2012 – International Exhibition and Symposium (CE2012), touted as one of the biggest and comprehensive exhibitions on construction in South Asia will be held in June next year at the BMICH, it was announced this week in Colombo. CE 2012 is organized by Ceylon Institute of Builders (CIOB) – the oldest body in construction industry in Sri Lanka together with Lanka Exhibition and Conference Services (Pvt) Ltd (LECS).

At the launch of the forthcoming event, Wimal Weerawansa, Minister of Constructions, Engineering Services, Housing and Common Amenities said that according to the Central Bank the construction industry is now contributing 9 % to the GDP and the growth next year would be 11 %.

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(Source: Sunday Times)

Sri Lankan homes to generate room capacity for tourism industry

Sri Lanka’s home stay concept initiated by the tourism industry is due to be launched next month and expected to generate about 1000-1500 rooms immediately.

Sri Lanka received 654,000 tourists in 2010, which is expected to top 750, 000 this year. In this regard the home stay and bungalow programme is expected to generate about 1000-1500 rooms immediately, a media release states.

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(Source: Sunday Times)

100% land sale tax for foreigners to be scrapped

Sri Lanka will scrap the 100% tax on foreigners buying land, to promote foreign investment and tourism. The Government instead plans to introduce a special land tax in the 2012 budget removing existing barriers in the sale of land to foreigners and foreign companies to develop land in any part of the country. This will bring more revenue to government coffers, Finance Ministry sources said. The new land tax, the amount of which is yet to be finalised, is aimed at preventing the sale of land at inflated prices to foreign buyers, making huge profits completely tax free and thereby cheating the government of revenue while also breaking immigration laws. Whenever there’s a prohibitive tax in place, foreign investors find a way around it and Sri Lanka is no exception, a senior official of the Finance Ministry, said More>>  (Source: Sunday Times)

Revised Galle Face deal offered to Chinese firm

Outright purchase changed to 99-year lease, but questions over CATIC’s acceptance

The Cabinet has now given approval for a 99-year lease of seven acres of prime land near Galle Face Green to China National Aero Technology and Export Corporation (CATIC). This is after reversing an earlier decision for the outright sale of the land for around US dollars 125 million (or about Rs 13.7 billion). It is not immediately clear whether CATIC — China’s aircraft manufacturing and marketing firm — would accept the offer or demand that its money be refunded. CATIC is learnt to have already remitted to the Treasury the amount involved. More>> (Source: Sunday Times)

Sanken, JKH JV on 240-room business hotel in Colombo

John Keells Holdings (JKH) plans to develop a total of 1000 rooms of the business-leisure segment in Colombo and, as part of this strategy, has joined up with developer Sanken Lanka Pvt Ltd to build a business hotel in Colombo.

The duo are investing in a 25 storey, 240-room business hotel worth Rs 2.9 billion in the heart of Colombo, with Sanken being the major shareholder and JKH having a minority stake while Keells Hotel Management Services will be the hotel operator, according to a JKH statement.

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(Source: Sunday Times)