Softlogic gets Narahenpita Milco land for development project
View(s):Milco’s Narahenpita factory land is to be leased out to a rapidly growing Sri Lankan conglomerate for a mixed development project, informed sources revealed.
Entrance to the Milco factory at Narahenpita.
The 13.5 acre land bordering Kirimandela Mawatha in Nawala will be handed over to Softlogic Holdings PLC on a long-term lease basis.
A senior Government official confirmed the deal adding that the long term lease of valuable land and property was given to Softlogic on a project proposal in an unsolicited bid.
“The building on the land will be demolished to implement the mixed development projects which will get tax benefits under the Strategic Development Act,” he revealed.
He added that tax relief and other incentives will be offered to the investor depending on the size of the investment. The Cabinet of Ministers has already granted approval for the Milco land transfer.
MILCO Chairman Sunil Wickramasinghe noted that the 55-year old factory at Narahenpita will be moved to a location in Badalgama with new machinery.
The company will also modernise its three factories at Ambewela, Digana and Polonnaruwa, he added.
Mr. Wickremasinghe said that the shifting of the Narahenpita factory was essential as it was located in a place surrounded by hospitals. Such a place is not suitable for a milk factory, he claimed.
Niroshan Padukka, Western Provincial Councillor who says he represents a section of the workers, told the Business Times, that 80 per cent of the work force of 1500 is living in Colombo and suburban areas and all of them have already been transferred to Ambewela and Polonnaruwa factories, he said adding that this was unfair.