Valuation disparity delayS Visumpaya Hotel Project

• Govt. doing new feasibility to fit into investor’s interests

By Kelum Bandara  

The project to convert the historic Visumpaya building into a heritage boutique hotel has hit an indefinite snag due to a notable disparity in valuation between the selected investor and the government, Daily Mirror learns. The Urban Development Authority (UDA) signed an agreement last year to lease on a long term the property, located at No. 25, Lillie Street, Colombo 2, to Azotels and Hunas Holdings PLC together with its Consortium. 

An informed source said the investor had valued it at Rs.4 -5 billion whereas the government’s valuation is around Rs.9 billion.

The difference has led to the government undertaking a fresh feasibility to explore how the investor’s interest could be accommodated and the project executed.  

Visumpaya is a heritage building built 190 years ago during colonial times. It was initially named ‘Ackland House’ and used as the Mess House for the Officers of the Ceylon Rifles Regiment, the property later became the Manager’s Quarters and Office for the Colombo Commercial Company, a prominent player in the commercial trade during that era.  
The Sirimavo Bandaranaike Government took over the building in 1971 under its nationalizing scheme, under the Business (Acquisition) Act No. 35 of 1971. It was used by the D. M. Jayaratne, 14th Prime Minister of Sri Lanka as his official residence and Anura Bandaranaike, the former Minister and Speaker, passed away in that building. 
It has now been identified as one of the heritage buildings to be converted to boutique hotels.