"Only buildings at Arcade Colombo were leased" - UDA

Colombo (News 1st); Only the buildings at Arcade Independence Square in Colombo was leased, said the Urban Development Authority on Thursday (25) adding the lease is subject to conditions where the lessee can only maintain and collect rent from the 42 stalls at the premises.

"The rest of the property will be for public use," said Prasad Ranaweera, the Director-General of the Urban Development Authority. Sirimal Perera, the Secretary of the Urban Development Authority further noted the Vistas of Prosperity and Splendour policy refers to Public-Private Partnership projects, and therefore Arcade Independence Square in Colombo has not been privatized. When a journalist questioned about not raising issues on underperforming assets Dr. Nalaka Godahewa, the State Minister of Urban Development said "There are about 300 state entities. If the daily activities of all these authorities are brought before Parliament, then the Parliament won't be able to focus on other matters,". Earlier in the day in Parliament, Dr. Nalaka Godahewa – Sri Lanka’s State Minister of Urban Development, Coast Conservation, Waste Disposal, and Community Cleanliness said that Arcade Independence Square generated a monthly income of Rs. 10 Million in 2014, however, that figure gradually declined from 2015. “It was the Urban Development Authority that managed the premises ever since it was opened,” he noted. The State Minister said when the incumbent government was elected, the UDA was to collect approximately Rs. 10 Million in arrears, adding 11 of the 42 stalls at the premises were shutdown. “Considering these facts, the UDA board decided to lease it to the private sector to generate greater revenue,” said the State Minister adding the state procurement process was followed when leasing the premises. Also, the Department Of Valuation has forwarded that Rs. 120 Million should be obtained as an annual lease, said the State Minister who noted that tenders were called for via newspaper advertisements. “Only ODEL PLC and Abans PLC had placed bids. The technical committee ruled that only ODEL PLC met the necessary criteria,” he added noting that the procurement committee too had approved it.