Government stands firm on Visumpaya price despite investor dispute

• Agrees to investor’s request for reassessment by a chartered valuer within 6 months

By Yohan Perera 

The government has announced that it will not reduce the price of the historic Visumpaya building and will adhere to the valuation provided by the Valuation Department, stated Minister of Urban Development Prasanna Ranatunga during yesterday’s session in Parliament.  

Minister Ranatunga responded to a query raised by Leader of the Opposition Sajith Premadasa regarding the historic building, affirming the government’s stance on maintaining the Valuation Department’s recommended price for Visumpaya. He also mentioned that the government has agreed to the investor’s request for another valuation to be conducted by a chartered valuer, granting a six-month period for this reassessment.  

The Minister assured the Parliament of maximum transparency in the transaction process. However, he emphasized that while the government cannot develop the property, it also cannot undertake its development independently.   According to reports, the Government Valuation stands at approximately Rs 9 billion, whereas the investor’s offer is Rs 4 billion.  

Previously, plans to convert the Visumpaya building into a heritage boutique hotel faced an indefinite delay due to significant differences in valuation between the chosen investor and the government. Last year, the Urban Development Authority (UDA) signed a long-term lease agreement for the property, situated at No. 25, Lillie Street, Colombo 2, with Azotels and Hunas Holdings PLC, along with its Consortium.