Lotus Tower looking for investors after Diana’s jackpot gamble fails

The Lotus Tower is looking for investors for its 44,000 square foot second floor after a rent agreement with a Singaporean company, backed by State Tourism Minister Diana Gamage, to set up a casino and entertainment area, lapsed with its conditions being unfulfilled.

A Singaporean firm named Kreate Design PTE forged a deal with the Lotus Tower Management Company (Pvt) Ltd (LTMC) last year for the sprawling floor in the tower base. The signing ceremony was attended by Minister Gamage and Arosha Fernando, Coordinating Secretary to the State Tourism Minister.

But three months into the agreement, its conditions--including that the company would secure the requisite casino licence--were not met. A month’s extension was granted on request but this, too, has expired, said Maj. Gen. (Rtd.) Prasad Samarasinghe, LTMC Chief Executive Officer and Director.

“The floor is now open for anybody and we will be floating a tender in this regard,” he said. Rent goes at Rs. 500 per square foot and Rs. 100 per square foot for common areas.

Minister Gamage had claimed that Kreate would open Sri Lanka’s “first foreign-funded casino and entertainment hub” at a total input of US$ 1bn over three years. She said business was introduced to Sri Lanka in late November by her and that it would be the largest investment for the country since the COVID-19 pandemic.

“All our plans are now ready to put into action as we will deliver what we have promised without any failure,” she was quoted as saying. The Singaporean company had reportedly tied up with a local firm through which it had applied for a casino licence.

Maj. Gen. Samarasinghe later confirmed that the company had signed a memorandum of understanding (MoU) for an annual rental of US$ 1.4mn. Under the 10-year agreement, LTMC was to have received a six-month refundable deposit and operations were to start last month.

LTMC has notified the parties that the MoU, along with the extension, lapsed on May 7. “We will be calling for proposals for a rent model and whoever wants to can bid,” Maj. Gen. Samarasinghe told the Sunday Times. “It doesn’t have to be just for a casino, it can be any model.”

Among the parties who inspected ii is an Omani investor who has previously expressed interest in UDA properties around Colombo; and an Indian investor who is also considering the casino option. The tender has not been advertised yet.

Considerable space in the Lotus Tower has already been rented out to food suppliers and others. And a deal is being hammered out for the management of the revolving restaurant, two banquet halls, six suites and kitchen.

There is a bungee jumping operator and a mega zip-line is also on the cards. All space on the dedicated technology floor is now filled, Maj. Gen. Samarasinghe said. More than 828,000 people --14,700 of them foreign tourists -- have visited the tower so far.