UDA was losing revenue; State Min. gives reasons for leasing Arcade Colombo

Colombo (News 1st); Arcade Independence Square generated a monthly income of Rs. 10 Million in 2014, however, that figure gradually declined from 2015, said Dr. Nalaka Godahewa - Sri Lanka's State Minister of Urban Development, Coast Conservation, Waste Disposal, and Community Cleanliness.

"It was the Urban Development Authority that managed the premises ever since it was opened," he told Parliament. 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. [embed]https://www.youtube.com/watch?v=oKgLKNazNTw&t=1s[/embed] JVP Leader Anura Kumara Dissanayake on Wednesday (24) voiced serious concern over leasing the Arcade Independence Square in Colombo to a private company. “The Urban Development Authority used over Rs. 700 million from the tax-payers for the construction of Arcade Independence Square,” he told Parliament adding it became a burden to the UDA when it came to operating it and maintaining it and it eventually became a loss-making entity. Anura Kumara Dissanayake said Arcade Independence Square was now leased to Softlogic Holdings chaired by Ashok Pathirage for 10 years.