Chinese firm Avic gets special status for a mixed development Colombo project
View(s):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.
The May 7th soft launch
In an interview with the Business Times,Chief Representative of the Avic Group in Sri Lanka, revealed that Avic Group’s local company Avic International Hotels Lanka Ltd bought a block of 264.65 perches bordering Galle Road at this property for Rs.1.85 billion at the rate of Rs. 7 million a perch. It has also purchased the adjoining block of land (about 50 perches) as well from Shaw Wallace in a ‘pure business deal’ for the mega mixed development project but he didn’t disclose the price.
An unpublished, soft launch of the project was held on May 7 at the site.
A 50-storied super luxury hotel, apartment and mega shopping complex will come up within 30 months on this property, he added.
The cabinet of ministers has granted strategic investment status for it with all necessary concessions including a 12 year tax holiday last week, he said, adding that the gazette notification will be issued shortly.
Shaw Wallace was planning to develop a luxury apartment complex on the balance property but the project fell through due to certain economic and financial constraints.
e entire property had been earlier earmarked for the Indian High Commission to build a Cultural Centre. The Indian High Commission had sought External Affairs Ministry clearance when it was reported that the land in question was to be given to another party a couple of years ago.
However Mr Zhuang said that there is no dispute about the land deal and the transaction has been completed with the endorsement of
An artist’s drawing of the futuristic building
the Sri Lankan government and other state agencies for this project.
He told the Business Times that their previous $500 million luxury hotel project at Galle Face has been shelved due to the outright purchase issue and the Government has refunded the advance payment of $54.4 million dollars.
When asked about this payment, Investment Promotion Minister Lakshman Yapa Abeywardena told the Business Times that Avic International made the down payment of Rs. US$ 54.4 million to the Treasury and he was not aware about any re-payment.
According to Finance Ministry sources, there are no records in the Treasury general accounts to show any repayment.
Avic International has been actively involved in infrastructure development projects in Sri Lanka for a long period of time.
Within two years after the end of the war, the company was awarded four highway development contracts amounting to $700 million.
It has also provided road construction machinery to Sri Lanka for Minister Basil Rajapaksa’s Uthuru Vasanthaya Project.
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