News
Swimming Club acquired for US – mistakenly
View(s):By Namini Wijedasa
The sale of the former British High Commission premises to the United States is to be concluded within a few days, the Sunday Times learns. Once its purchase of the 434-perch block in Kollupitiya is through, the US will hold sizeable tracts of prime property in Colombo. Not only is its embassy situated on the plot adjoining the former British High Commission, the US also owns the land (including the beach) on which the United States Information Service office is built. The embassy and the USIS office are less than a kilometre apart.
The Western Provincial Council last week confirmed the purchase of a property by the US Government —but by mistake mentioned the Colombo Swimming Club premises address in a Gazette Extraordinary.
The Gazette Extraordinary signed by Western Provincial Council Chief Minister Prasanna Ranatunga authorised the waiver of stamp duty payable by the US Government on its purchase of 148, Galle Road, Colombo 3. That address is of the Colombo Swimming Club; the land held by the British Government is at 190, Galle Road, Colombo 3.
The Club is not up for sale. Neither does the US Government want that property. “We are not buying the Colombo Swimming Club,” said an embassy spokesman. “The US embassy is in the process of purchasing the old British High Commission land next to its present location on Galle Road. A new U.S. embassy will be constructed in the near future.”
Mr. Ranatunga was not aware of a mistake in the Gazette he had authorised. He said it had been sent to him by the office of the Thimbirigasyaya Divisional Secretary.
“We have learnt that the indicated Assessment Number 148 is inadvertently mentioned in the Gazette and we will take action to rectify it after verifying the Assessment very soon,” the Chief Minister’s Secretary S.T. Kodikara later wrote to the Sunday Times.
The US embassy has also requested the Ministry of External Affairs to have the error corrected. Stamp duty has been waived under the provisions of the Financial Statute of the Western Province.
Meanwhile, although the US will buy the whole plot from the British Government, the Sri Lankan Government has served acquisition notice on the property for the extension of the Marine Drive beyond the Kollupitiya railway station where it now ends.
This means that once the US takes possession of the land, it would have to release part of it to the Sri Lankan Government for construction of the road. Following negotiations between the two Governments, the US has agreed to sell the required extent of land to the Sri Lankan Government at a “fair market price” when necessary.
The property fell vacant in mid-2008, when the British High Commission shifted to Bauddhaloka Mawatha in Colombo 7. The British Foreign and Commonwealth Office (FCO) then advertised its intent to sell the property in Sri Lanka and overseas media. But while several expressions of interest were submitted by foreign and local parties, including John Keels Holdings, the FCO rejected them.
Authoritative sources said last week that this could have been because the US Government had indicated to the British Government early in the process that it was a potential buyer.
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