Thursday 16 November 2017

Shangrila-La secures additional 3 ½ acres on 99-year lease

Ahead of mega hotel opening tomorrow

By Shamindra Ferdinando

Hong Kong-based Shangrila-La Group has secured three and a half acres adjoining its latest hotel situated on 10 acres abutting the Galle Face promenade in Colombo.

Cabinet spokesperson and Sports Minister Dayasiri Jayasekera yesterday said the government had re-negotiated with the Shangrila-La Group what he called a much better deal than the one struck by the previous administration.

Jayasekera was addressing the post-cabinet media briefing at the Government Information Department. Minister Jayasekera was flanked by Minister Gayantha Karunatilleke and Military Spokesman Maj. Gen. Roshan Seneviratne.

Jayasekera confirmed that the lease was for a period of 99 years.

President Maithripala Sirisena, Prime Minister Ranil Wickremesinghe and industry leaders are scheduled to attend the opening of Shangrila-La, Colombo tomorrow (Nov 17).

The then Economic Development Minister Basil Rajapaksa broke ground in February 2012, three years after the conclusion of the conflict.

Minister Jayasekera said the government had leased three and a half acres of land at a rate of Rs. 13.1 mn per perch whereas the previous administration had agreed to Rs 6.5 mn per perch.
Jayasekera said the previous government in which he, too, was a member leased 10 acres for 99-years and then negotiated a separate agreement on the adjoining three and a half acre property for Rs. 6.6 bn.

The Ministry of Defence and Urban Development were responsible for negotiations with Shangrila-La for 13 and a half acres during the previous administration. After the change of government in 2015 January, the new leaders had called for a fresh valuation to ensure the country received the best possible terms, Minister Jayasekera said.

Cabinet spokesman Jayasekera told The Island yesterday evening that the previous government had leased 10 acres at a rate of Rs 9.5 mn (with taxes) per perch.

In accordance with the plan finalised by former Defence Secretary Gotabhaya Rajapaksa, the Defence Ministry and Army headquarters were to be shifted to Akuregoda defence complex now under construction.

Minister Jayasekera told the media that President Maithripala Sirisena hadn’t been involved in negotiating or promoting the Shangrila-La project. He said the proper procedures had been followed in finalising the second transaction with the Shangrila-La Group.
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