Krrish, Shangri-La projects in Colombo clear hurdles
View(s):The Krrish square mixed development project tainted by scandalous financial deals is to finalise the land lease by making the final payment of Rs. 589.7 million by the end of next month, Minister of Investment Promotion Lakshman Yapa Abeywardena said. However the Delhi-based Krrish group’s partnership with Ritz Carlton to bring the seven-star hotel to Colombo is unlikely to happen, the Business Times reliably learns.
When Parliament agreed to grant a massive 25-year tax exemption to Krrish Group last year, it was based on the condition that the investor was to make full payment for the 99-year lease for the 4.3 acre property as per the agreement and also have commercial operations begin on a given date.
Informed sources said that there were moves to cover up the scandalous financial deal which involved top brass in the country destroying evidence and silencing informants.
Meanwhile investigations into the alleged pay-off to a prominent official to facilitate the project have been completed and its report with findings of irregular payments is now with high government authorities and necessary action will be taken within the next two months, before the November budget.
In the meantime Krrish paid Rs. 150.8 million to Urban Development Authority last week and the total payment made by them up to now was Rs. 4.4 billion, Minister Abeywardena said adding that the full payment for the leasing of prime Transworks property at Colombo Fort was Rs. 4.99 billion.
In the circumstances the Board of Investment will take necessary action to grant strategic development project status providing tax incentives to Krrish group to continue the construction work by presenting the relevant bill in Parliament, Mr. Abeywardena told reporters on Tuesday.
The project is being changed from its earlier grand status. Plans to turn the Transwork House into an iconic mall with high-end products have been shelved while the prices of the apartments are also to be drastically reduced, the sources said.
Mr. Abeywardena noted that the developer has the right to make changes in the building plan with the consent of the authorities and this was a normal practice the world over. Krrish had planned to build four towers – the tallest tower with 85 floors, the second 80 and the other two – 55 floors each, in five million square feet of residential, commercial space and a hotel. Meanwhile Hong Kong-based Shangri-La Asia’s super luxury hotel project in Colombo will resume construction work next month after making some changes to building plans, the minister said.
Construction work on the 497-room Shangri-La Hotel Colombo located between the Galle Face green promenade and Beira Lake, has been delayed due to some bottlenecks but these issues have now been sorted out, he said.
He reiterated that there was no financial dispute between the government and Shangri-La in the implementation of the project.
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