The Cabinet of Ministers decided to appoint a committee to investigate the irregularities in the Grand Hyatt Project today(1).
The Committee will also investigate the irregularities committed by the previous management of the Sino Lanka (Pvt) Ltd. involved in the Grand Hyatt project.
The project was launched under the former Rajapaksa Government and 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
The hotel was scheduled to open in the first quarter of 2016 after the completion of construction.
Most of the agreements signed by the previous government were terminated by the new board of directors of the Sino Lanka (Pvt) Ltd which was appointed following the 2015 presidential election without any justifiable reason and it entered into agreements with new contractors.
Therefore, some companies have initiated legal proceedings. As a result, it has been decided that the Sino Lanka (Pvt) Ltd shall pay approximately a sum of Rs. 1.8 billion as compensation.
The current cost of the project, which was originally planned to be completed at an estimated cost of 30 Billion Rupees, is re-estimated to be around 60 Billion Rupees.
The cabinet of Minister has approved the proposal tabled by Prime Minister Mahinda Rajapaksa, as the Finance Minister, to appoint a committee to investigate the financial loss incurred by the Government due to the cancellation of the Grand Hyatt project.