• Chief Valuer not reconsidering 
• Japanese investor refuses to proceed

The Government Valuation Department is not reconsidering its original valuation of the Visumpaya High-end Boutique Hotel Project, which has resulted in the suspension of the project with the Japanese investor refusing to move forward, The Sunday Morning learns. 

A high-level official at the Urban Development Authority (UDA) told The Sunday Morning that since the Chief Valuer was not reconsidering the original valuation of Visumpaya, the project was at a standstill as the Japanese investor did not find the figure feasible. 

In January, the Memorandum of Understanding (MoU) between the Japanese investor of the project Azotels Hospitality Ltd., Hunas Holdings (the local partner), and the UDA, which was initially valid until 7 January, was extended by three months. 

The extension was granted due to a disparity in the valuations presented by the Government and the investor, with some reports noting that the Government’s appraisal of the project was twice as high as the valuation conducted by the latter. 

The revival of the old colonial mansion, which housed former State officials and dignitaries, into a boutique hotel is part of the ‘New Colombo Heritage City Plan’ proposed by the Urban Development and Housing Ministry in order to attract foreign investments into the country on the heels of the foreign exchange crisis. 

The plan aims to lease out historical buildings for development under Public-Private Partnerships (PPPs). 

Speaking to The Sunday Morning, a high-level official at the Ministry of Urban Development and Housing said that 13 projects in Colombo had been earmarked for development, of which four were to be implemented as soon as possible. 

“A private consultant is developing the proposals at the moment while the same consultant is also developing a proposal on tourism in the eastern region.”

Attempts to contact Urban Development and Housing Minister Prasanna Ranatunga regarding the matter proved futile.