Hotels (Commonwealth Union) _ It seems like there’s a snag in the ‘Visumpaya’ deal, as the Japanese investor reportedly withdraws from the project. According to sources, the investor is citing excessively high valuations provided by the Government Valuer as the reason for pulling out. The Government’s appraisal of the property is allegedly twice as high as the valuation conducted by the Japanese company.
Originally intended to be converted into a boutique hotel by the Urban Development Authority (UDA) to attract foreign investments to Sri Lanka, Visumpaya’s deal involved a Memorandum of Understanding (MoU) signed between UDA and Azotels Hospitality Ltd. The plan was for Azotels Hospitality, in collaboration with Hunas Holdings and Japan’s Partner Consortium, to run the property as a super hotel under a 50-year lease.
However, issues have arisen related to the valuation of the property, causing the Japanese investor to reconsider their involvement in the project. The UDA acknowledges these challenges, and UDA Additional Director General Mahinda Withanaarachchi stated that the Japanese investor is likely to walk away from the project.
The proposed project aimed to transform the historic Visumpaya building into an eco-friendly high-end boutique hotel, catering to high-end tourists. The colonial-era building constructed in 1835 holds historical significance and served as a residence for State leaders in the past. Its rich history adds to the cultural and architectural heritage of the region, reflecting the colonial legacy and the evolution of governance over the years.
Despite setbacks in the Visumpaya deal, the UDA is actively pursuing other development projects. With projects valued at less than Rs. 100 million awaiting approval and larger-scale initiatives structured as Public-Private Partnerships already in progress, the UDA remains committed to fostering development amid challenges.
