Krrish gets another extension to make final payment

By Mario Andree

 The Krrish Group has been granted more time to make its final payment, to the Urban development Authority (UDA), on the 99-year lease of the Transwork tower land in Colombo Fort, which it has undertaken to develop.This follows three extensions granted by the government to the group, the last of which ended on July 30. 2013.

The company has already paid 84 percent of the lease and been charged 12 per cent interest due to the considerable delay in payment.

Minister of Investment Promotion Lakshman Yapa Abeywardena, addressing a media conference in Trincomalee, said the company had been given more time to finalise the balance payment since they have agreed to pay an additional 12 percent as interest.

Krrish withheld the balance payment due to a land issue involving the project. The BoI granted the Krrish Transwork project time till May 31 to make the balance payment after the land matter was resolved and the ownership was transferred. The company was also granted the second extension up to July 15 and on the request by the company the third has been granted. The fourth extension has been given to the group with no deadline since the company agreed to pay 12 percent interest on the delay.

Abeywardena said that the company had been given notice to pay the balance 16 percent. He said would not submit the project proposal to the Cabinet as a strategic development which would gain several tax concessions.

The company was given four acres in Fort on a 99-year lease at Rs. 5 billion and has so far paid the UDA Rs. 4.1 billion.

The Krrish Group entered Sri Lanka last year to develop a hotel, apartment complexes, shopping and dining areas and many other facilities to support tourism growth. The company has heavily advertised the mixed development project.

Krrish Transworks Colombo Pvt. Ltd Chairman Amit Katyal said in July, "We have been making payments according to the schedule agreed on and so far Rs 4,250 million has been paid to UDA, which constitutes 85 per cent of the total payments."

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