Shangri-La agreement not between GoSL and China: Malik

Thursday, 20 September 2018 00:48 - - {{hitsCtrl.values.hits}}

The controversial Shangri-La Hotel project in Colombo is not a result of an agreement signed between the governments of Sri Lanka and China, Development Strategies and International Trade Minister Malik Samarawickrama confirmed to Parliament yesterday.

The Minister, tabling his responses to questions raised for oral answers by JVP MP Dr. Nalinda Jayatissa, held that the agreements were signed between the Board of Investment of Sri Lanka (BoI) and Shangri-La Hotel Lanka Ltd during the Rajapakse regime.

Accordingly, Agreement no. 228 entered into by BoI and Shangri-La Hotel Lanka Ltd. on the 7th February 2011 confirms an application for approval of investment, dated 13 September and 10 December 2010, made by Shangri-La Asia Ltd., of 21/F, CITIC Tower, No.1, Tim Mei Avenue in Hong Kong, wherein Shangri-La Asia Ltd. is identified as the principal, to construct and operate a luxury hotel in Colombo as a mixed-use complex, inclusive of high-quality residencies and a high-end shopping mall, with an envisaged investment of $ 238.5 million.

Further, the said project received Cabinet approval on 20 October 2010, identifying it as a strategic development under the terms of section 3 of the Strategic Development Projects Act No. 14 of 2008.

Director General Jayampathi Bandaranayake of the BoI and Directors Madhu Rama Chandra Rao and Mohomad Sajjad Mawoon of Shangri-La Hotel Lanka Ltd. are signatories to Agreement 228, which was attested by a notary in Colombo, with a land area of 4.0469 hectares being earmarked for the project, on the basis of a State grant under section 23 of the Crown Land Ordinance.

Subsequently, another agreement was signed between the BoI and the Shangri-La Hotel Lanka Ltd., soon after the Unity Government came into power. According to the Ministry, this new agreement, identified as No. 24 and dated 1 April 2015, was signed by BoI Chairman Upul Jayasuriya and the two Directors of the Shangri-La Project Ltd.

(AH)