The Lanka Tractors Ltd property at Narahenpita acquired by the state under recent expropriation laws is to be developed into a modern hospital with an investment of Rs. 850 million, government officials said.
Lanka Orix Leasing Company Plc (LOLC) together with Browns has expressed interest to implement the hospital project at this 5-acre site. A cabinet subcommittee headed by Minister Anura Priyadharshana Yapa will finalise the deal within a few weeks, a senior government official said.
The committee has been appointed to monitor the process of land being revived under the directions of Kalinga Indatissa, Attorney-at-Law - Competent Authority for Lanka Tractors Ltd (properties at Pettah and Narahenpita), Charmers Granaries (at Pettah), Ceylinco Leisure Properties Ltd a Kollupitiya and Intertrade Lanka (Pvt) Ltd at Fort. The senior official disclosed that the state land given to Lanka Tractors is worth over Rs 2.4 billion even though it was given at Rs 144 million, and that it does not have even a single employee now.
The company has contested the state take-over saying the Government has no legal right in acquiring the land. According to Lanka Tractors Chairman, Daya Wettasinghe, the properties belonged to a public company before purchase. He explained that a controlling interest in, and management of, the public company known as Lanka Tractors Ltd, was purchased by a consortium of foreign and local investors.