- UDA says investor has fulfilled lease obligations
- Seeks extension over economic crisis impact on development timeline
- Stresses importance of amicably resolving development delays
- Extension sought until 2027
Contrary to speculation, the Urban Development Authority (UDA) has not taken over the Krrish Square Project, with the lease between the UDA and the investor still in force, according to the UDA.
Speaking to The Sunday Morning Business, UDA Deputy Director General (Real Estate and Land Management) E.A.C. Piyashantha revealed that the UDA had not taken any steps to expropriate the land leased out for the Krrish Project as reported and that the lease between the UDA and investors remained in force.
He stated that the investor of the Krrish Square Project had duly paid all the lease rentals due in respect of the 3.7 acre land leased out by the UDA and that the only failure on the part of the investor had been the inability to complete the development within the specified development period.
Piyashantha stated: “This is a massive investment for them [the investor] and they had made a request seeking further time. Thus far the Government has not taken a policy decision on what to do. They have duly paid all payments due to us in respect of the land. The only holdup is the development; that is an issue caused by our economic crisis.”
He pointed out that the public had already invested money into this project and therefore halting the project at this juncture would be counterproductive for all parties. Accordingly, he said that this issue must be resolved amicably with the investor, and therefore, the Government must consider all these facts and make an appropriate policy decision.
In 2023, it was revealed that the investor of the Krrish Square Project had submitted a proposal to the Ministry of Urban Development seeking an extension of the development period – which was set to expire in 2024 – until 2027.
The developer, Krrish Transworks Colombo Ltd. – the local company of the Krrish Group – had 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 is a large-scale mixed development that will comprise high-end residential towers, commercial and retail spaces, and a seven-star hotel.
The development also contains the Transworks Building, a heritage site, which is to retain its architectural character and be converted into a luxury boutique hotel.