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Low Value

May 2 (LBO) -- A lower than expected valuation of prime commercial property belonging to Sathosa may delay its sale to a state bank, a top official said.
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The chief government valuer has assessed the 225 perches property at Union Place at a much lower price than originally expected by the trade ministry, an official said.
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This may delay the proposed land sale to the National Savings Bank (NSB), Trade Secretary R M K Ratnayake said.


Earlier, the trade ministry planned to auction the property to the highest bidder, but later NSB had wanted the land to build an apartment complex.


The Union Place land belonging to Sathosa has reportedly been valued at four million rupees a perch.

But the ministry of trade was expecting about 5.

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5 million rupees per perch based on existing market prices.

A nearby land belonging to the Employers' Trust Fund (ETF) had been given on a 99-year lease to Odel shopping complex at a much lower price of around 4 million rupees, sometime earlier and this had lowered the value of the Sathosa land which is a few blocks across.

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Meanwhile, the government has paid 250 million rupees as compensation to 1,950 emp

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