MP Patari Champika Ranawa said Colombo Lotus Tower will need to earn US$41,000 a day in revenue over the next five years to cover the loans obtained for its construction. increase.
At a recent meeting with senior officials from the Sri Lanka Parliamentary Journalists Association, MP Ranawa said a total of US$105 million was spent on the tower and another US$56 million would be needed to settle the loan over the next five years. said. Year.
” It is a waste for a country like ours. The corruption caused by this needs to be discussed separately,” the MP said.
The proposal to build the Colombo Lotus Tower estimated the total cost of the project at Rs 9.3 billion at the time, but did not include the land.
There also appears to have been no “proper valuation” of the income that could be generated after the facility was completed.
The required “adequate” feasibility study was not conducted and a special government audit in 2019 found only financial viability performed by the Project Consultancy Unit (PCU) at no cost.
Although the China Exim Bank loan had an interest rate of 4% plus prevailing LIBOR, financial feasibility calculated the borrowing cost to be 3.5%, significantly underestimating Rs. 5 million.
The report did not take into account the interest on the loan during the payment period. Failure to include management fees and commitment fees for unused loan amounts. Undervalued insurance premium over Rs. 680 million; overestimated the present value of budget revenue by more than 2 billion rupees.
The Colombo Lotus Tower remains on Sri Lanka’s list of failed taxpayer-funded multi-billion rupee vanity projects and receives direct political support.
Lotus Tower is currently owned by the Telecommunications Regulatory Board of Sri Lanka (TRCSL) but managed by Lotus Tower Management Company (Pvt) Ltd (LTMC) which has an independent board of directors under the Ministry of Finance.
The Ministry of Finance has now allocated Rs.500 crore to Lotus Tower Management Company (Pvt) Ltd (LTMC).
Colombo Lotus Tower has been rebranded as a technology and entertainment hub with income expected primarily from rentals.
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