Deputy Economic Development Minister Lakshman Yapa Abeywardena says the government held the right to make policy changes when leasing out state lands to foreign investors.
Abeywardena has made this comment in parliament in response to a question posed by UNP parliamentarian Dayasiri Jayasekera on the leasing out of a five acre land near the Galle Face Green to China Aviation Technology Import and Export (CATIC) Ltd.
The Deputy Minister has said the valuation is currently being carried out on the land that would be given on a 99-year lease.
When Jayasekera has questioned whether the land had initially been sold to the Chinese company, the Deputy Minister has responded saying the government could always change its policy regarding such deals.
Abeywardena has explained that CATIC is to build a 500-room five star hotel complex and shopping mall in the land near Galle Face.
He has added that the Shangri La Group, which had bought over 10 acres of land nearby, is to build a six star hotel comprising 500 rooms.