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Message: <blockquote data-quote="Flyboy" data-source="post: 9599608" data-attributes="member: 53885">The Government has acquired the Hilton Hotel in Colombo as the owners of the leading Hotel had only paid two months of lease to the government since its inception, Minister Basil Rajapaksa told Parliament this evening.Signs of the takeover by the government surfaced early last month after State media reported that ownership of the hotel will revert back to the State as the lease rental has not been paid for the land.The Hilton Hotel deal was signed by the Urban Development Authority (UDA) during the UNP regime in 1984. Then six acres of land at Echelon Square, Colombo 1 where the Hilton hotel stands today was leased to Cornel & Company Ltd for Rs 136 million, the State media reported last month.Cornel and Company Ltd subleased the land to Hotel Developers (Lanka) PLC at an enhanced value of Rs 250 million thereby making a windfall profit of Rs 114 million almost overnight.Cornel & Co Ltd was issued 51 percent shares of Hotel Developers (Lanka) PLC for the total lease premium of Rs 250 million.Even though the land was leased to Cornel & Company Ltd for Rs 136 million by the UDA and Cornel & Company Ltd subleased the land to HDL for Rs 250 million, in actual fact Cornel & Company Ltd paid only Rs 27 million to UDA which was only 20 percent of the value of the lease rental payable to UDA i.e 20 percent of Rs 136 million. The balance was to be paid in 33 interest free installments.However, this was never ever paid. As the lease rental has not been paid the land has now reverted back to the State</blockquote>

Verification: Hathara warak wissa keeyada? (Hathara wadi karanna 20)

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