China-funded ‘Lotus Tower’ stirs financial controversy

(FASTNEWS | COLOMBO) – President Maithripala Sirisena yesterday (16) stated that the Government had paid an initial deposit of Rs 2,000 million to a Chinese construction company as an advance payment for commencing construction, which ceases to exist with the payment.

The President made these remarks addressing the ceremony held to mark the opening of South Asia’s tallest and World’s 19th tallest building ‘Lotus Tower’ in Colombo yesterday.

“It is alarming to note that the Chinese company, which obtained the advance payments, vanished suddenly with the advance payment of Rs 2,000 million. Despite various attempts to find the vanished contractor, no one knows what happened to the company and the payment even today,” he stressed.

The President further said that an amount of Rs. 2 000 million more has to be spent to complete the construction of the tower.

The construction of the ‘Lotus Tower’ commenced in 2012 with a loan amounting to Rs. 12 billion granted by the Exim Bank of China. The total construction cost is Rs. 16 billion.

Accordingly, an amount of Rs 2,400 million has to be paid annually for a period of 10-years as loan instalment to the Exim Bank of China.

“Accordingly we paid Rs. 2,400 million last year, and Rs. 1,200 million has already been paid in this year,” the President added.