• Developer undergoes liquidation before Commercial High Court of Colombo
• Leasehold right to project land to be sold to new investor
• UDA has no intention to take back land

The future of the Krrish Square project remains in limbo while its developer, Krrish Transworks Colombo Ltd., undergoes liquidation before the Commercial High Court of Colombo, with the leasehold right to the project land expected to be sold to a new investor through the liquidation process.

Speaking to The Sunday Morning Business, a high-ranking source from the Urban Development Authority (UDA), on condition of anonymity, revealed that the future of the Krrish project remained in limbo while Krrish Transworks Colombo, the developer of the Krrish Square project, underwent liquidation.

Responding to a query, he claimed that the liquidator could sell the leasehold right to the land, granted by the UDA to the developer, to a new investor within the liquidation process.

“The leasehold right can be sold, since it is done by the court,” he stated.

However, he stated that he was unaware whether any investors had expressed an interest to the liquidator to purchase the leasehold right.

Responding to queries on whether the UDA intended to take back the land, he stated that the authority had no intention of doing so, adding that it would instead wait for a new investor to be identified and granted the project by the liquidator through the liquidation process.

In response to questions on whether the UDA had a timeline within which the project could be recommenced, he stated: “Krrish is undergoing the liquidation process, so it is difficult to set a timeline.”

The Krrish Transworks Colombo liquidation stems from an action instituted by a major creditor before the Commercial High Court of Colombo seeking to compulsorily wind up the company. The Commercial High Court thereafter made an order winding up the company on or around August 2024.

The developer, Krrish Transworks Colombo, the local company of the Krrish Group, entered into a lease agreement with the UDA in 2012 for 99 years at Rs. 5 billion for the Krrish Square project.

The proposed development was expected to be a large-scale mixed development consisting of high-end residential towers, commercial and retail spaces, and a seven-star hotel. It was also to contain the Transworks Building, a heritage site, which was to retain its architectural character and be converted into a luxury boutique hotel.