The controversial Krrish project located in Fort, Colombo — comprising luxury residences and two internationally recognised hotel brands — last week called for local and foreign bids to develop the property. The project consists of three towers and a podium, with a total built-up area of 10.4 million square feet.
The invitation was issued through a public notice by the court-appointed liquidator, G.K. Sudath Kumar. The notice described the development as a large-scale mixed-use project featuring luxury hotel brands Ritz and JW, branded residences, office space, and a high-end retail mall situated in one of Colombo’s prime commercial locations.
Originally promoted by India-based Krrish Group, the project was taken over by the Sri Lankan government after the company failed to meet construction deadlines. The Indian entity is also currently under investigation by Indian authorities over alleged financial irregularities.
According to the liquidator, the original project costs were estimated at USD 395 million for the 84-floor Ritz Hotel and residences, USD 125 million for the 74-floor JW Hotel and JW residences, and USD 145 million for the 94-floor JW residences and office tower. The total construction cost amounted to USD 665 million, with an additional USD 47 million allocated for design and development. Construction commenced after Krrish secured a 99-year lease from the Urban Development Authority in 2012 for USD 17 million (approximately Rs. 5 billion), during the tenure of former President Mahinda Rajapaksa.
The project has been beset by controversy since its inception. In February last year, two separate fires erupted on the 24th and 35th floors of the unfinished structure. Numerous investors who had paid for apartments have since appealed to authorities to either restart the stalled project or compensate them for their losses.
The liquidator has now invited offers and proposals to invest in and restructure the company, or to purchase the improvement and leasehold rights of the company currently under liquidation. Submissions will close on February 28.
Under Sri Lanka’s liquidation framework, when a company is unable to service its debts, directors may seek court approval to wind up operations or declare bankruptcy. An administrator is subsequently appointed to assess whether the company can be revived by engaging with creditors and debtors to restructure outstanding obligations. While some restructuring efforts succeed, others do not.
Meanwhile, the Attorney General has filed indictments against Sri Lanka Podujana Peramuna (SLPP) Member of Parliament Namal Rajapaksa in connection with the Krrish project. The case, filed before the Colombo High Court, alleges criminal misappropriation of Rs. 70 million, accusing Mr. Rajapaksa of receiving funds from the Indian real estate firm purportedly for the development of rugby in Sri Lanka. Mr. Rajapaksa has denied all allegations.
