brand logo

More Yahapalana bungling uncovered | UDA targets casino land

23 Aug 2020

By Maheesha Mudugamuwa The Urban Development Authority (UDA) has directed Rank Holdings to settle a total of Rs. 330 million it owes the UDA as accumulated interest payments for a land which was famously earmarked for a failed casino development project. The UDA has already notified the company that the due amount should be settled as soon as possible, failing which the UDA would not approve any further development on the land, UDA Director General N.P.K. Ranaweera told The Sunday Morning. “The company will definitely have to pay the Rs. 330 million waived off by the previous Government,” he reiterated. Rank Holdings was set to be the local partner of the abandoned casino project of Australian billionaire James Packer’s casino group Crown Resorts, with the land in question earmarked to be the venue for the planned casino and resort. The project was abandoned several years ago amidst stiff opposition from various quarters. The Rs. 330 million had been waived off by former UDA Chairman Jagath Munasinghe in 2017 when signing the agreement with Lake Leisure Holdings (Pvt.) Ltd. to lease out the land adjoining D.R. Wijewardena Mawatha and Sir Chittampalam A. Gardiner Mawatha, Colombo 2. Lake Leisure was earlier known as Rank Entertainment Holdings Ltd. and subsequently got the name changed to Rank Car Park Lanka (Pvt.) Ltd. Munasinghe had signed a 50-year lease agreement for a mixed development project, giving the concession of Rs. 330 million to the lessee. In a letter written to former Minister of Megapolis and Western Development Patali Champika Ranawaka by Ministry Consultant (Investigation) M.A.R.D. Jayathillaka, dated 27 March 2017, it is stated that the land has been leased on a 50-year basis at the Government Chief Valuer’s valuation of Rs. 2,785 million and the physical possession of the land had been handed over on 18 February 2010 on the payment of Rs. 577 million which was paid in instalments. Due to reasons beyond the control of the developers, the project got delayed and since then, the Cabinet Committee on Economic Management (CCEM) had decided to allocate the land at the present market value as decided by the Chief Valuer, which is at Rs. 3,620 million. In the meantime, the former UDA Chairman had made a decision to deduct from the balance due from the developer, the interest that could have been earned by the developer on the advance payment made, the letter stated. The Consultant Investigator, in his letter, had stressed that the former UDA Chairman had no authority to approve the deduction of an amount of this magnitude and that this should have been approved by the Board of Directors. The Cabinet Subcommittee on Investment Facilitation had given its approval to the UDA on 23 March 2007 to hand over a two-acre, one rood, and 21.4-perch land at D.R. Wijewardena Mawatha to Rank Entertainment Holdings, owned by Ravi Wijeratne, for a multi-storey car park, hotel, and shopping complex. Later on, the name of the company changed to Rank Car Park Lanka (Pvt.) Ltd. and the approval given for a 30-year lease through Cabinet Memorandum No. 09/1391/320/064 by then Finance Minister Mahinda Rajapaksa was cancelled, and Cabinet approval was given to Lake Leisure Holdings owned by the same owner of the two former companies for a mixed development project on a 50-year lease.

Kapruka

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Automobile, Mother and Baby Products, Clothing, and Fashion. Additionally, Kapruka offers unique online services like Money Remittance, Astrology, Medicine Delivery, and access to over 700 Top Brands. Also If you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.Send love straight to their heart this Valentine's with our thoughtful gifts!

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Automobile, Mother and Baby Products, Clothing, and Fashion. Additionally, Kapruka offers unique online services like Money Remittance, Astrology, Medicine Delivery, and access to over 700 Top Brands. Also If you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.Send love straight to their heart this Valentine's with our thoughtful gifts!


More News..