Sri Lanka state to take over stalled high rise project

Oct 25, 2011 (LBO) – The Sri Lankan government is to take over a high rise hotel and apartment tower whose construction was stalled after its parent firm got into financial trouble. The takeover is to be effected under a new law that is being put through the judicial and parliamentary approvals process that provides for the state to take over what are identified as ‘underperforming enterprises and underutilized assets’ owned by the state and those in which the state is considered to have an interest.

Minister of economic development Basil Rajapaksa said the take over of the Celestial Residencies tower project, designed to house a five star hotel and apartments, is with the aim of completing the project.

“The government will take over the project and pay compensation to those who bought apartments,” he told a news conference.

A committee of officials has been formed to revive construction work and complete the project as further delays might make it unusable with the risk of steel already used in the building rusting, he said.

“We want to complete the tower quickly as the steel could rust,” Rajapaksa said.

A fund is to be created to pay compensation to apartm