A committee has been appointed to investigate irregularities in the Grand Hyatt project, the cabinet of Ministers announced today.

The Grand Hyatt Hotel project was launched under the former Rajapaksa Government and was implemented by the Sino Lanka (Pvt) Ltd, which is a subsidiary of the Sri Lanka Insurance Corporation, Employees’ Provident Fund and Litro Gas Lanka Ltd. The hotel was scheduled to open in the first quarter of 2016, following the completion of construction.

The cabinet said however, most of the agreements signed by the previous Rajapaksa government were terminated by the new board of directors of the Sino Lanka (Pvt) Ltd which was appointed following the 2015 presidential election. The Grand Hyatt project too was cancelled without justifiable reason and agreements were signed with new contractors.

Therefore, some companies have initiated legal proceedings. As a result, it has been decided that the Sino Lanka (Pvt) Ltd shall pay approximately a sum of Rs. 1.8 billion as compensation.

The cabinet further said the current cost of the project, which was originally planned to be completed at an estimated cost of Rs. 30 billion, has been re- estimated to be around Rs. 60 billion.

Therefore, the cabinet of Minister has approved the proposal tabled by Prime Minister Mahinda Rajapaksa, as the Finance Minister, to appoint a committee to investigate the financial loss incurred by the Government due to the cancellation of the Grand Hyatt project.

The Committee will also investigate the irregularities committed by the previous management of the Sino Lanka (Pvt) Ltd. involved in the Grand Hyatt project.