The Independence Square Arcade had been leased out to Softlogic Holdings for a period of 10 years following proper tender procedures, State Minister Nalaka Godahewa told Parliament yesterday.

The Minister said the Board of Directors of the Urban Development Authority had decided to lease out the building as it was running at a loss.

Godahewa said the shopping complex had been leased out in keeping with accepted tender procedures.

Two Companies Softlogic Holdings and Abans PLC had tendered bids and Softlogic Holdings was chosen by the tender committee, he said.

State Minister Godahewa said the company would be paying Rs. 10 million per month as lease rental.

He furnished the details while responding to a question raised by JVP Leader Anura Kumara Dissanayake, who urged the government to reveal the lease agreement.

The previous day, MP Dissanayake questioned the ten-year lease on the shopping arcade to a private firm for management, asking to reveal whether open tenders were called.

Dissanayake told parliament that the Independence Square Arcade had been built at a cost of 700 million rupees in taxpayer money as part of the city beautification project.

He questioned the process behind the Urban Development Authority, which comes under Minister Godahewa.

“State Minister Nalaka Godahewa should make a statement to the Parliament on whether an open tender process was called to lease the Arcade Shopping Complex,” the JVP leader said.