Krrish says committed to work with new regime
Indian-based Krrish Group has indicated that it’s committed to working with the new Sri Lankan government on the long delayed controversial multimillion Krrish Transworks Tower project in Colombo Fort, a top official said.
Representatives of the company met Board of Investment (BOI) Chairman Upul Jayasuriya on Monday. Mr. Jayasuriya told the Business Times that Krrish representatives have given an assurance that the company will pay the due Rs.589.7 million with accumulated interest at 12 per cent and begin construction work within two months. So far the total payment made by them was Rs. 4.4 billion while the total due to the Urban Development Authority (UDA) is Rs. 4.995 billion. The final payment has to be made to close the 4-acre land lease deal in force since May 2013.
Krrish evaded six deadlines for the balance payment given by the previous regime
The allegation of secret payoffs to keep the window open for payment and for various approvals ended with some unfortunate incidents. Names of several powerful members of the former regime figured in the allegation of secret payoffs by the Krrish Group.Mr. Jayasuriya noted that Krrish representatives were scheduled to meet the UDA Chairman Ranjith Fernando to iron out issues relating to the project.
He noted that Krrish has not lobbied for tax concessions under the strategic investment project status.
In October 2012, the Ministry of Investment Promotions of the previous regime through a Gazette Notification proposed a 25-year tax benefit exempting the company from withholding tax on interest on foreign loans, capital expenditure and technical fees paid and other levies.
But the gazette notification granting tax concessions for the Krrish project under the strategic development project act was not presented in parliament by former Investment Promotion Minister Lakshman Yapa Abeywardena due to the company’s failure to pay the balance money for the land under the lease agreement.