Monday, January 28, 2013

Krrish, Shangri-La, and JKH’s ‘City within City’ surpassing US$ 1bn - Rishad

* New hotel projects to sustain 30%+ tourism growth

* Projects under SDA not for short term cash

As Sri Lanka reports a huge 30% growth in tourism, many new mega-projects are now slated to back this crucial sector by the government, and the large scale projects under the Strategic Development Projects Act are not for short term cash gain, the Ministry of Industry and Commerce said yesterday (27)

"During 2011 to 2013, many strategic development projects of large scale have been approved by the Parliament. During 2011-‘13, the government successfully commenced the Krrish Transworks Colombo at US$ 450 million, Shangri-La hotels project at US$ 240 million, and the mixed utility complex with luxury hotel at US$ 140 million," Bathiudeen, Minister of Industry and Commerce of Sri Lanka told parliament last week. Bathiudeen was taking part in the debate on the order under the Strategic Development Projects Act No 14 of 2008.

 Providing more details to the House, Bathiudeen revealed: "The Mixed development project by John Keells Holdings has a project value of $ 500 Mn and I am happy to say that it is the first ever new concept of City within City in our capital Colombo. And the Mixed Development by Welcome Hotels Lanka will bring in $ 140 Mn. Its investor, India’s ITC Company is also joined by world renowned Sheraton Hotels. India’s ITC hotel has annual turnover of $ seven Bn with 29000 employed across 60 locations in India. It is among the top ten corporates of India."

 Revealing details on the Krrish Project, Minister Bathiudeen said: "Next let us look at the Krrish Project. Krrish Transworks project is a mixed  development project of $ 450 Mn. The agreement between UDA and Krrish is for 99 year lease period at a (lease) value of Rs 4.9 Billion. The project implementation period is 60 months. The Investor is Krrish group of India. We are pleased to say that the complex will have four towers of 70 stories each. Three towers will have high end residential apartments."

 In his respons to arguments raised by the opposition that these hotel project investors are ‘poor investors’, Minister Bathiudeen said:  "Certain members of the Opposition are of the belief that these are poor investors. However Sir, we believe that we should not be unusually concerned about the initial investment value or how much (cash) the investors are bringing at the start. In fact, we cannot expect investors to bring high amounts cash dollars initially. They are not overnight investors who want to bring (and dump) some cash at start and then leave. They are here to stay for the long term. We should not forego long term prospects for short term revenues."

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