News
Champika claims highest tower in South Asia a white elephant
MP Patali Champika Ranawaka says the Colombo Lotus Tower would require earning a daily-revenue of US$ 41,000 for the next five years in order to cover the loans obtained for its construction.
At a meeting with the executive members of the Sri Lanka Parliamentary Journalists’ Association recently, MP Ranawaka said that a total of US$ 105 million was spent on the tower and a further US$ 56 million is required to settle the loan in the next five years.
” It’s a waste for a country like ours. We need to talk separately about the corruption that took place in this,” the MP said.
The proposal to construct the Colombo Lotus Tower estimated the total cost of the project at Rs 9.3 billion at the time, while it did not include land.
There didn’t appear to be a “proper assessment” of the income that could be generated once the facility was completed as well.
The required “proper” feasibility study was never conducted and a special Government audit in 2019 found only financial feasibility carried out by the Project Consultancy Unit (PCU) for free.
The interest on the China EXIM Bank’s loan was four percent plus prevailing LIBOR, but the financial feasibility calculated borrowing cost at 3.5 percent, causing a significant understatement of over Rs. 500 million.
The report hadn’t considered loan interest for the period of disbursement; neglected to include management and commitment fees for unutilized loan amounts; understated insurance costs by over Rs. 680 million; and overstated the present value of budgeted income by more than Rs 2 billion.
The Colombo Lotus Tower remains on the list of Sri Lanka’s failed taxpayer-funded and multibillion rupee vanity projects that have direct political backing.
The Lotus Tower at present is owned by the Telecommunication Regulatory Commission of Sri Lanka (TRCSL) but managed by the Lotus Tower Management Company (Pvt) Ltd (LTMC) under the Treasury, with an independent Board of Directors.
The Treasury has now allocated Rs 500 million to Lotus Tower Management Company (Pvt) Ltd (LTMC).
The Colombo Lotus Tower has been rebranded as the epicenter of technology and entertainment with expected income chiefly from rent.
NPP Parliamentarian Asoka Ranwala who was appointed the 22nd Speaker of Sri Lanka’s Parliament, on 21st November has resigned from his position today [13], in the wake of the controversy surrounding his educational qualifications.
President Anura Kumara Dissanayake has officially appointed members to the Port City Economic Commission.
Accordingly Harsha Amarasekera, President’s Counsel, has been appointed as the Chairman while Damien Amal Cabraal, Mohan Ray Abeywardena, Sanjaya Kulatunga, and Dr. Harsha Subasinghe were appointed as members of the Port City Economic Commission
The official letters of appointment were handed over to the members by the Secretary to the President Dr. Nandika Sanath Kumanayake at the Presidential Secretariat today (13).
“We will not allow the trust the people have placed in us to be undermined in any way,” stated President Anura Kumara Dissanayake during a meeting with the heads of state media today (13).
He further emphasised, “Regardless of their status in government, if mistakes are made, we will not hesitate to take appropriate action.”
The President further explained:
“For more than seven decades, the people of this nation have built and dismantled various governments. For the first time, we stand with a profound understanding of the historic mandate entrusted to us and the National People’s Power on two occasions.
The people placed their faith in the National People’s Power (NPP) government, hoping for a standardised and stable country. We will not tarnish that extraordinary trust, even by the slightest misconduct.
Simply put, our government is not here to shield anyone who errs, for any reason. Be it within the broader framework of the country or within our administration, anyone found guilty of wrongdoing will face consequences. We will not hesitate to act decisively and at the right time. In essence, our government will not shield anyone who makes a mistake, regardless of the reason. Whether the mistake occurs within the country or at any level within our government, we will not hesitate to take decisive action. Every necessary step will be taken at the appropriate time without delay.”
President Anura Kumara Dissanayake also reaffirmed his government’s unwavering commitment to upholding the trust placed in them by the people, who have endured decades of deception. He pledged to work tirelessly to build a better nation.
The Minister of Health and Mass Media, Dr Nalinda Jayatissa, Director-General of Government Information, Harsha Bandara, and the heads of state media were present at the meeting.
Bloody siege ends Myanmar army control of western border
Speaker of Parliament Asoka Ranwala resigns
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