The Government will sign the agreement with India’s Krrish Group for a US$ 450 million seven star hotel, plus apartment complex spanning four 80 storeyed columns in the Colombo Fort on December 15.
According to the agreement, the full payment should be made within two weeks, Deputy Minister of Economic Development Lakshman Yapa Abeywardena told The Island Financial Review yesterday.
He said that a 10% slab of US$ 45 million has already been paid and the balance will be paid on December 31 or before which are in accordance with the agreement.
He said that the delay for the project to kick off was due to the dispute in relation to the land which was perceived to belong fully to the Urban Development Authority but investigations had revealed that the land partly belonged to the UDA as well as the Land Commissioners Department.
The Minister said that the issue had been sorted out with a special Cabinet memorandum which enabled the UDA to acquire the land fully under its aegis.
The Deputy Minister said that the government has intimated the investor that the issue was now sorted out and that they could arrive in Colombo to sign the agreements and proceed with the project.
He also refuted speculation that the project had been called off and that the investor had repatriated the funds to India.
He explained that what had effectively happened was the project kicking off was slightly delayed due to the dispute to the ownership of the land in Fort being settled.