A six (06) member committee has been appointed to investigate irregularities by the previous management of the Sino Lanka (Pvt) Ltd involved in the Grand Hyatt project.
The project was implemented by the Sino Lanka (Pvt) Ltd, which is a subsidiary of the Sri Lanka Insurance Corporation, Employees’ Provident Fund and Litro Gas Lanka Ltd during the former Rajapaksa regime. The Grand Hyatt Hotel was scheduled to open in the first quarter of 2016.
Co- cabinet spokesman Minister Udaya Gammanpila said however, following the 2015 Presidential Elections, the Yahapalana Government had terminated a number of projects of the previous Government, including the Grand Hyatt project.
The new board of directors of the Sino Lanka (Pvt) Ltd appointed by the former Yahapalana Government had terminated the project without any justifiable reason and had entered into agreements with new contractors. As a result, some companies involved in the Grand Hyatt project have initiated legal proceedings, he said.
Minister Gammanpila further said that the current cost of the project, which was originally planned to be completed at an estimated cost of Rs. 30 Billion, has been re-estimated to be around Rs. 60 Billion Rupees.
The Government has incurred a loss of Rs. 38 billion due to the cancellation of the Grand Hyatt project and is now compelled to provide a compensation of approximately Rs. 1.8 billion through the Sino Lanka (Pvt) Ltd, he said.
The cabinet of Ministers has therefore approved a proposal submitted by Prime Minister Mahinda Rajapaksa, in his capacity as the Finance Minister, to appoint a committee to investigate the irregularities committed by the previous management of the Sino Lanka (Pvt) Ltd.
Minister Udaya Gammanpila expressed these views during the weekly cabinet media briefing held today. (Colombo Gazette)