Krrish Transworks Colombo Ltd., the developer behind the Krrish Square project, has submitted a proposal to involve a Chinese contractor in the ongoing litigation with several of its creditors.
In a recent statement, A.M.P.M.B. Atapattu, Secretary of the Ministry of Rural and Urban Development, Housing, and Construction, revealed that multiple creditors had taken Krrish Transworks Colombo to court. He noted that he was informed of the situation informally and had not received any official communication regarding the matter.
Atapattu elaborated, stating, “A paper was submitted by Krrish indicating that a Chinese contractor will take over the project and complete it. I don’t know how realistic or accurate this is, nor do I understand how they plan to secure the additional investment needed to finish this project.”
He emphasized that the ministry would await the conclusion of the court proceedings and a decision on the project’s future before making any determinations.
Reliable sources indicate that a major creditor of Krrish Transworks Colombo filed an action in the Commercial High Court, seeking to compulsorily wind up the company. This prompted several other creditors to intervene in the case. Subsequently, the Commercial High Court issued an order to wind up the company around August. Krrish Transworks Colombo then challenged this court order through a restitutio in integrum application.
Krrish Transworks Colombo Ltd., a local entity of the Krrish Group, entered into a 99-year lease agreement with the Urban Development Authority (UDA) in 2012 for Rs. 5 billion to develop the Krrish Square project.
The ambitious project was envisioned as a large-scale mixed-use development that would feature high-end residential towers, commercial and retail spaces, and a seven-star hotel. Additionally, it was planned to preserve the Transworks building, a heritage site, maintaining its architectural character while converting it into a luxury boutique hotel.
