Feb 26, 2017

An obstacle to Logistics City project Featured

A serious obstacle has come in the way of the Logistics City, the first services city in Sri Lanka, for which the prime minister recently laid the foundation at Kerawalapitiya in the Muthurajawela industrial zone.

That is because the southern expressway to Katunayake is to be located across the 15-acre block of land where this facility is to come up, say Urban Development Authority sources.

Once the expressway is constructed across Kerawalapitiya and Muthurajawela, only a 15-perch block of land will be left for any other purpose, say the sources.

The land in question has already been bought for Rs. 694 for the Logistics City, which will be a joint venture by Hemas Logistics, GAC Sri Lanka, and McLaren’s International.

The deal has taken place with the intervention of the megapolis and western development ministry and the Land Reclamation Corporation.

Can UDA buy the land?

If the UDA is to buy this land, a question will arise as to how much compensation will have to be paid.

According to reliable sources, the daughter of a top official in the Logistics City venture is married to a relative of the wife of a powerful minister in the government.

It is him who has mediated to buy the land through the megapolis ministry.

When contacted, subject minister Patali Champika Ranawaka said the land was sold to the highest bidder, adding the previous Rajapkasa regime had planned to sell if for only Rs. 502 million.

He added that as far as he knew, the construction of the expressway would not come in the war of the Logistics City project.