Video: Krrish strikes deal with Ritz-Carlton

3 July 2014 12:32 pm Views - 8632

The controversial Krrish Transworks Colombo, the local unit of the Indian based property developer has struck a deal with the United States based global luxury hotel chain, the Ritz-Carlton Hotel Company to hand-over the management of its proposed skyscraper in the heart of Colombo, according to Sri Lanka’s Investment promotion Minister.

The joint agreement between Krrish and Ritz-Carlton is a commonly used arrangement in the hospitality industry where the developer hands-over the management of the facility to a specialist in the industry.

Meanwhile it was also revealed that the company runs the risk of losing its agreement with Urban Development Authority (UDA) if they fail to commence the constructions by this September.

“We will not allow them to start constructions if they do not make the balance payment and the UDA will cancel their agreement if they fail to start the constructions,” said Minister Lakshman Yapa Abeywardena.

The catch-22 situation the Krrish is in currently will compel them to settle their balance payment of Rs.639 million prior to September if they wish to start work on the site facing Hilton Colombo which was previously a car park.

Minister Yapa revealed that Krrish has so far paid a sum of Rs.4,355.5 million. However the whole Krrish deal is marred with allegations of delayed lease payments, bribing of officials and rumours that the government is taking away the project from Krrish.

Krrish made its last payment on September 12, 2013 amounting Rs.150 million out of which Rs.49 million had been for the 12 percent penal tax for late payments.(Dilina Kulathunga)

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