Sri Lanka expropriated high rise to state agencies: report

Dec 26, 2011 (LBO) – A partially built high rise building in Sri Lanka’s capital Colombo which will be taken over and completed by a consortium of state entities following its expropriation, a media report said. Celestial Residencies, a building initiated by the troubled Ceylinco group where construction was halted will be completed with 9.2 billion rupees of investments mainly from state firms, Sri Lanka’s The Sunday Times newspaper said.

It is one of three dozen firms expropriated by the state through a controversial law.

State-run Sri Lanka Insurance will make a 6.8 billion rupee investment which will used to pay off contractors and those who made advance payments for apartments, the newspaper said, citing an unnamed finance ministry official.

The consortium will include state run Bank of Ceylon, People’s Bank and the Employees Provident Fund and Employees Trust Fund, two state-managed pension funds of private citizens will raise 9.2 billion to complete the project, the report said.

A stock exchange flotation is planned and a 450-room Hyatt Regency hotel is also expected to be operated in 45 floor tower, as originally envisaged by its first promoters, the report said.