Krrish group faces stay or depart directive
Krrish group faces a stay or depart directive issued by the government that allows them time till September – a final deadline – to pay the Colombo Fort Transwork square balance land lease payment, Investment Promotion Minister Lakshman Yapa Abeywardena told journalists in Colombo on Thursday.
The company had been given time till July 15, another of the many extensions it has received, to complete the land lease deal of around Rs. 5 billion of which a sum of Rs.4.4 billion has already been paid by them to the Urban Development Authority (UDA).In what is seen as the final deadline, Minister Abeywardena said, “If the company fails to complete payment before September, the final deadline, and ensure that the project would be completed in the given time frame, the project would be cancelled.” Of the balance Rs. 639.5 million due since May 2013, the UDA has received Rs.150 million from Krrish in September last year. Interest charges are also mounting.
“The UDA will now have to recover around Rs. 800 million from the company with accumulated 12 per cent interest,” he said adding that out of the Rs. 150 million paid by them in September 2013 a sum of Rs. 49 million had been deducted as interest charges.
In a fresh development, the minister said he was informed by the UDA that luxury hotel chain Ritz Carlton has signed a management agreement with Krrish project that will have four high –rise towers with high end residential apartments, a retail complex, commercial offices and a 7-star hotel.