The much delayed Indian Investment of US$ 460 million by the Krrish Group, which faced several issues, has been granted a third extension to finalise the balance payments to the Urban Development Authority for the development of four acres in the heart of the Colombo Fort area.
The company has so far paid 81 percent of the land lease and has been charged 12 per cent interest on the balance payment, which has been due for a considerable period.
Investment Promotion Minister Lakshman Yapa Abeywardena told the Island Financial Review that the company had requested for time till July 31 to finalise the full payment and had agreed to pay the 12 per cent interest charged by the government on the delayed payment.
Krrish withheld the balance payment due to a land issue involving the project. The BoI granted the Krrish Transwork project time till May 31 to make the balance payment after the land matter was resolved and the ownership was transferred. The company was granted the second extension up to July 15 and on the request by the group the third has been granted on the condition they pay interest of 12 per cent on the due amount.
Abeywardena last week said that the company was given notice to pay the balance 16 per cent by July 15 or he would not submit the project proposal to the Cabinet as a strategic development which would gain several tax concessions.
The company was given four acres in Fort on a 99-year lease at Rs. 5 billion and the company has so far paid the Urban Development Authority Rs. 4.1 billion.
The stalled project entered Sri Lanka last year to develop a hotel, apartment complexes, shopping and dining areas and many other facilities to support tourism growth. The company had heavily advertised the mixed development project on its arrival in the country.