• Local, foreign investors distance themselves from stalled project
• Asia Capital clarifies limited role in project 
• UDA unaware of investors’ intentions 

The multimillion-dollar Mixed Development Project on D.R. Wijewardena Mawatha opposite Lake House in Colombo 1 appears to be dead in the water as both local and foreign investors seek to dissociate themselves from it and the Urban Development Authority (UDA) seemingly unaware of its current status.

In 2018, Belluna Co. Ltd., a company listed on the Tokyo Stock Exchange First Section, along with Asia Capital PLC, invested Rs. 4 billion to purchase the land from the UDA and its previous leaseholder, Rank Holdings, owned by Ravi Wijeratne. However, construction, which was planned to begin in 2019, did not proceed as expected.

Speaking to The Sunday Morning Business, Asia Capital Chairman Thilanga Sumathipala dissociated Asia Capital from the project, clarifying that while Asia Capital had been part of the initial purchase of the property, it did not have any involvement in the actual execution of the project.

He stated: “It was Belluna that purchased the land. Asia Capital had nothing to do with it; we were just an intermediary party to facilitate the deal.”

These comments by Asia Capital come in the backdrop of comments made by Belluna Co. Ltd. President and CEO Kiyoshi Yasuno last year to a local media institution, wherein he revealed that Belluna was facing a cash crunch amid the prevailing economic downturn and therefore was considering pulling out by selling the land lease rights to an interested party.

However, when The Sunday Morning Business reached out to the UDA to inquire whether a new investor was being sought for the project, the UDA disclosed that although it was aware that construction had not commenced, it was unaware of the investors’ intention to withdraw.