Lotus Tower: Diana’s US$ 1bn in 3 years is really US$ 1.4mn a year

Lotus Tower Management Company (Pvt) Ltd (LTMC) will receive USD 1.4 million a year as part of an agreement to hire out one floor of the tower base of Colombo Lotus Tower to a Singapore-based company for a casino and entertainment area, including water sports.

The agreement between LTMC and Singapore’s Kreate Design Pte. Limited will see the second floor of the tower base, consisting of 44,000 square feet, being leased to the company for entertainment purposes, LTMC’s Chief Executive Officer (CEO) and Director Maj.Gen. (Rtd) Prasad Samarasinghe told the Sunday Times. The yearly rental under the agreement will amount to USD 1.4 million.

However, during a media conference held on Friday to sign the agreement, Tourism State Minister Diana Gamage claimed the investment would bring in USD 1 billion over the next three years. She did not offer any evidence to back up this figure.

A statement issued after the media briefing claimed a fully-fledged casino and an entertainment area including waters sports will be developed at the Lotus Tower within the next six months.

Under the terms of the 10-year agreement with Kreate Design, LTMC will receive a six month refundable deposit and the company is to begin operations from next April. There will be a 10% increment on the lease every two years.

Meanwhile, LTMC also made an income of Rs. 198 million over the past two months, Maj.Gen. (Rtd) Samarasinghe added.