New Govt. clears Krrish deal: Preliminary work starts

The new government, largely controlled by the United National Party (UNP) whose parliamentarians were vociferous against the Krrish deal when they were in opposition, has given the go ahead to the Indian-based company to commence the long delayed and controversial Krrish Square mixed development project, a top official confirmed.

Urban Development Authority (UDA) Chairman Ranjith Fernando told the Business Times that preliminary work on the project at the prime 4.3 acre land which housed the Transwork House, a British era heritage building in Fort, has begun following the clearance given by the government despite the Krrish group still not paying the final due of Rs.589.7 million with accumulated interest at 12 per cent.

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(Source: Sunday Times)

Port city project to start soon: Arjuna

Work on the Colombo Port City project will begin soon as it has not been cancelled, Ports and Shipping Minister Arjuna Ranatunga informed Parliament yesterday. 

The Minister said work on the project was suspended as there were some serious issues pertaining to the legality as well as environment issues. He said a legal issue did exist on the ownership of the port city land which had been given to China though there was no legal provision for such a move. He said land could only be leased out according to the law. However he said these issues would be resolved soon. 

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(Source: Daily Mirror)

Colombo Port City To Resume After Evironmental Clearance

The Sri Lankan cabinet has decided to consider clearing the USD 1.4 billion Chinese funded and executed Colombo Port City Project after it gets environmental clearance.

Announcing this to the media in Colombo on Thursday, the cabinet spokesman, Rajitha Senaratne, said that the cabinet also decided to take the project away from the Sri Lanka Ports Authority (SLPA) and hand it over to the Urban Development Authority (UDA).

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(Source: Asian Mirror)

Mansion tax could be approved in next parliament, if not this - FM

If Parliamentary approval cannot be obtained for the Super Gains Tax, the Mansion Tax etc introduced by the new government’s interim budget, it could be obtained in the next parliament and hence no issues would arise over their legal aspects, said Finance Minister Ravi Karunanayake.

The Finance Minister added that though these taxes have been included in the Order Paper of Parliament the Opposition was obstructing their progress.

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(Source: Ada Derana)

Maldivian Firm Mulls US$ 35M Hotel Project In Kalpitiya

Maldives-based Sun Siyam Group, owned by Maldivian Parliamentarian and philanthropist Ahmed Siyam Mohamed, is confident of completing upmarket Maldivian-styled tourist resort in the Vellai Islet of Kalpitiya within the next two years.

“We hope to complete our second project in Sri Lanka, a 150-room hotel in Kalpitiya at a cost of US$ 35 by 2017.  The Passekudah Sun Aqua property which was opened recent was our first-ever property in Sri Lanka and was built at a cost of US$ 11 million,”  Siyam Mohamed told the Sunday Leader, on the sidelines of the Hospitality Investment Conference Indian Ocean held this week in Colombo.

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(Source: Sunday Leader)

Instructions from PM to stop acquisition of lands in the Colombo District by force and evacuation of residents from their houses

Prime Minister Ranil Wickremesinghe has instructed the Urban Development Authority chairman to immediately stop acquiring Colombo District lands by force and evacuating people from their houses under the pretext of development.

Issuing a communiqué the Prime Minister said that if land acquisition was necessary a systematic humane methodology should be formulated with the participation of the MPs and advice of civil society of the area.

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(Source: Hiru News)

Casino Ban Fails to Deter Developer’s Postwar Sri Lanka Plan

A ban on casinos by Sri Lanka’s new government isn’t stopping the nation’s biggest conglomerate from pressing ahead with a $850 million development project as the island rebuilds from a 30-year civil war.

Lenders are fully committed to John Keells Holdings Plc.’s Waterfront Properties mixed development project in Colombo though the absence of a casino may take some sheen off it and dent revenue, Chairman Susantha Ratnayake said in an interview.

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(Source: Ada Derana)

Biz community renews calls for revised Land Act

Sri Lanka’s business community renewed their calls to revisit the controversial Land Act enacted by the former regime limiting foreigners and foreign-owned corporates to outright owning lands, as it acts as a major deterrent to lure the much-needed foreign direct investments (FDIs). 

“We are of the view that the ambiguity inherent in the Act and the uncertainty it creates as a result will be deterrents to capital formation and foreign direct investment in Sri Lanka and therefore, require urgent review,” John Keells Holdings PLC (JKH) Chairman Susantha Ratnayake said in his annual review. 

The Land (Restrictions on Alienation) Act was passed in Parliament last October limiting the purchase of land by foreigners and entities with over 50 percent of foreign ownership with retrospective effect from January 1, 2013. 

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(Source: Daily Mirror)