Krrish scandal sets stage for a major shake-up at SEC

The Colombo Krrish Square scandal over alleged kickbacks received by a prominent official to secure the legal rights to develop the Transworks property at Colombo Fort is to claim its first victim setting the stage for a major shake-up in the country’s capital market regulator, informed official sources said.

Construction work of the project has come to a standstill and the massive hoardings advertising the Krrish towers have disappeared and no statements are forthcoming from anyone on the current status.

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(Source: Sunday Times)

Sri Lanka leases out land for Packer-linked casino

Sri Lanka has leased some prime real estate in the capital to a local casino operator who is expected to develop a $350 million entertainment complex with Australian gambling mogul James Packer, an official said Monday.

The cabinet gave final approval last month to lease the lakefront land to a company set up by Sri Lanka's top casino operator, Rank Holdings, for 2.78 billion rupees ($22.28 million dollars), the official said.

"The land is given to the Sri Lankan company which is in partnership with the Crown group (of Packer)," the official from the investment promotion ministry told AFP on condition of anonymity.

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(Source: Global Post)

Chinese firm Avic gets special status for a mixed development Colombo project

The Sri Lanka Government has given strategic investment project status to the US$300 million mixed development project of Avic International Corporation in a prime property in Colombo.

The ‘Colpetty Mills’ land extending to 542 perches is owned by Shaw Wallace and Hedges PLC and a large slice was sold to Avic, a top official of the company, an influential group with lot of Sri Lankan Government contracts, said. The land has access from both Galle Road and Duplication Road.

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(Source: Sunday Times)

Lankan homes open out to tourists

Sri Lanka is encouraging more and more local families to open their homes to tourists and earn money in the process while increasing the room stock from this category to 10,000 by 2016.

The country is targetting 2.5 million visitors by 2016 and currently has 23,000 rooms compared to the 45,000 rooms needed to meet the five-fold increase from less than 500,000 in 2009. Currently there are about 300 homes of below five rooms each listed in the Sri Lanka Tourism website as ‘homestays’ providing a total of less than 1,000 rooms.

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(Source: Sunday Times)

Re-construction of partly built Celestial Towers expedited to accommodate CHOGM delegates

In a desperate effort to provide accommodation for foreign delegates of the November Commonwealth Heads of Government Meeting (CHOGM) in Colombo, re-construction of the state-acquired Celestial Residencies, better known as Celestial Towers at Kollupitiya has been expedited on a Government directive, officials said.

The building at the former Ceylinco Group-owned property is being fast-tracked to be completed by October 2013 against the earlier schedule completion date of July 2014

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(Source: Sunday Times)

Small hotels for sale

Many small hotels in the southern coastal belt are approaching their bigger counterparts for management buyouts or part stake sales, as they struggle to fight escalating costs, overpricing and competition, industry analysts say.

“Most hotels are based on future earnings and valuations. Right now they are overpriced. Small hotel operators are finding it increasingly hard to operate with the high costs, and expensive rates. Most are for sale and some have approached larger hotel groups to either sell or part-sell their properties,” an industry analyst said.

He said that this includes boutique hotels and 3-to-4 four star properties in Wadduwa, Hikkaduwa, Galle, Thalpe, Ranna among other towns. According to industry sources, boutique hotels are being offered at as much as US$ 3 million for a 70 per cent stake. “Both locals and foreigners are seeing these properties and some sales are nearing completion,” an industry source said.

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(Source: Sunday Times)

11,000 room nights wanted for Indian film crew

A 250-strong Indian film crew led by talented actor Ranbir Kapoor will spend millions of rupees and use some 11,000 room nights between July-September to shoot an ambitious movie in Sri Lanka.

Indian film director Anurag Kashyap is using Sri Lanka as a location for the movie “Bombay Velvet” to be shot at Serendib Studio at the Ranminithenna Tele Village in Hambantota.

The selected organization should arrange 11,000 room nights in Colombo, Galle and Tissamaharama for the visiting crew negotiating charges with local hotels and provide 230 economy class and 30 business class air tickets.

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(Source: Sunday Times)