India’s Krrish Group’s controversial Colombo project to recommence: BOI

Jan 19, 2016 (LBO) – Sri Lanka’s government is planning to sign a new agreement with India’s Krrish Group to restart its long delayed and controversial project in Colombo, a senior official said.

“We are negotiating with Krrish and hope to finalize a new agreement very soon,” Duminda Ariyasinghe, Director General of Sri Lanka’s Board of Investment said.

“The earlier agreement was not comprehensive and also had several unfavorable clauses.”

The Krrish square mixed development project in capital Colombo is worth 650 million US dollar and will include four high-rises containing a luxury hotel, apartments, malls and office space, on a 4.3-acre land leased for 99-years from Sri Lanka’s Urban Development Authority.

The project was marred with controversy with the allegation of secret payoffs and names of several powerful members of the former regime figured in the allegations.

Krrish has so far made a payment of 4.4 billion rupees while the total due to the UDA is 4.995 billion rupees as lease payments.