Financial Times

Colombo Land and Development Company Limited (CLDL) wants to start a quarry at its Orukanda Estate as there is an increasing demand for stone aggregates in Sri Lanka due to infrastructure development.

“We have already obtained the licence from the Geological Survey and Mines Bureau for the test blast and results indicated that the quality and standard is in line with the specifications of the Road Development Authority. Due to the massive road development schemes, there is a high demand for rock,” Rohan Tudawe, Chairman CLDL told The Sunday Times FT.

The company recorded a profit of Rs.26 million (before tax) compared with Rs.42 million in 2004, however upon consolidating the Uni Walker Packaging Group, the loss came to Rs.17 million compared with Rs.8 million in 2004. “Continuous negotiations have been taking place with the third party to exit,” Tudawe said.

He said that the company is negotiating with the Sri Jayawardenepura Municipal Council for the development of a 3.5 acre site as a shopping and leisure complex in Nawala Road, Nugegoda. The company is now pursuing a joint venture with the UDA which has been approved by the UDA Board of Management. The company intends to exchange part of the land in Pettah for the 3.5 acres in Nugegoda.

He also said that the decision not to dispose of the units at Liberty Plaza as it was foreseen that condominium prices would escalate has paid rich dividend as prices have increased by 90 percent since then, and now the company is able to sell at premium prices for the commercial and residential properties.

“The service charges levied by the Liberty Plaza Management Corporation (LPMC) to recover their recurring costs and the cost of replacing the aged equipment have contributed towards the increase of service charges, which have been passed partially on to the tenants. The reason being we are all encountering resistance over increasing the rent to cover the increase in service charges and related costs,” Tudawe said.

He said that the average occupancy rate during the year exceeded 90 percent.

He also said that the Agrispice (Pvt) Ltd, a wholly owned subsidiary of the group, owns the Orukanda Estate in Avissawella, where the planted teak and Mahogany trees have shown a very steady growth and is expected to give a long-term yield. “Intercropping is being practiced to reduce the impact on the group’s finances on account of recurring expenditure,” he added.