The Hon. Sunil Handunnetti - Minister of Industry and Entrepreneurship Development

¶ 01 Hon. Speaker, the answers are as follows:

¶ 02 (a) (i) Yes. At No. 25, Galle Face Terrace, Colombo 03, the Authority owns 28.62 perches with a five-storey building totaling approximately 24,800 sq. ft. (ii) While the 32-storey construction by Galle Face Properties (affiliated to Renuka Holdings) on the adjacent lots was underway, impact occurred causing cracking and partial subsidence of the Authority’s building. The National Building Research Organisation (NBRO) reported as follows: - Annex 01 (2021.07.17): Recommended temporary evacuation; contractor to submit a detailed report; NBRO approval required prior to any restoration methodology. - Annex 02 (2021.08.31): Advised that the contractor conduct a structural study and submit a report to decide on remediation. - Annex 03: NBRO approvals (2021.10.08, 2021.12.27) for the contractor Perigon Lanka (Pvt) Ltd’s technical remediation proposal after structural study. - Annex 04 (2024.08.02): Central Engineering Consultancy Bureau (CECB) technical report, obtained for court purposes, on works needed to restore and render the building usable. (iii) Yes. Case No. DSP 228/2022 was filed on 2022.05.23 in the Colombo District Court naming Renuka Holdings and Galle Face Properties (Pvt) Ltd as 1st and 2nd defendants.

¶ 03 To quantify damages and feasibility of restoration, the Authority issued a commission to CECB on 2024.01.18; CECB’s report dated 2024.08.02 has been filed in court (Annex 04). The preliminary estimate in that period to restore was Rs. 6,770,037.60; with escalations, Rs. 14,252,383.38. However, based on commercial value considerations, we have reservations regarding that estimate and, on advice of the President’s Counsel, matters will be addressed on the next court date, 2025.09.10.

¶ 04 (b) No. There is no decision to settle the case and sell the building and land to Renuka Holdings. The current Authority office is in a private rented premises at approximately Rs. 5 million per month. When considering long-term accommodation—whether to repair the old building, demolish and rebuild on-site, or sell and acquire a new building—the Board received on 2025.02.05 a non-solicited expression from Renuka Holdings indicating interest to purchase the property for Rs. 415.25 million. The Board (Minute No. 2585) approved considering options: 1. Accepting CECB’s estimate and commencing repairs; 2. Demolishing and constructing a new building to suit Authority needs on the same site; or 3. Selling the old building to the highest bidder through proper Government tender procedures and purchasing a new building for the Authority.

¶ 05 The rationale for exploring sale or rebuild includes: ground-floor flooding even in light rain; no frontage to a main road; inadequate parking (only space for about three vehicles). Nevertheless, no final decision has been taken. Any disposal would be via transparent tender and with Cabinet approval; unsolicited proposals will not be entertained.

¶ 06 (c) Does not arise.

¶ 07 I table Annexes 01–08.