- Capitol TwinPeaks breaks the traditional method of import financing mould by activating a Usance LC facility, with a 720-day payment settlement period secured through an offshore partner
- Capitol TwinPeaks is now able to import raw material until project completion in end June 2021 sans foreign exchange outflow from the economy
Business News | Colombo: Hatton National Bank (HNB) and People’s Bank together with the Sanken Group signed an agreement, on 12th August 2020, to ensure balance funding, for the completion of “Capitol TwinPeaks” – the 50-storey twin-tower mixed development project located at Staple Street, Colombo 2.
The recently signed partnership stands as a testament with a vote of confidence by the banks in the Sanken Group’s capacity to deliver on its real estate promise for its investors and residents, whilst also acting as a signifier to potential international and local clientele of the strategy Sanken has envisioned to aid in uplifting the nation.
Speaking with Managing Director – Capitol TwinPeaks, Rohana Wannigama commented “The Group made the strategic decision to complete ‘Capitol TwinPeaks’ Superstructure well ahead and to order most of the crucial imports, ahead of schedule, especially to mitigate foreign currency fluctuation risks. This organised and precision planning of Sanken, which is deeply rooted in our Japanese-Mitsui DNA has allowed the project to maintain safety, product quality, timely delivery and also to keep cost escalations under control.
All balance raw material that are to be imported are getting cleared by relevant local authorities at present, leaving no reason for the work process to slow down. Through the financial partnership with HNB and People’s Bank, we aim to expedite the remaining construction work, whilst also adhering to Central Bank regulations, in order to support the continued growth of the Sri Lankan economy.”
As a resultant of post-COVID-19 restrictions imposed by the Central Bank to control foreign exchange outflow from the country, a large percentage of the real estate industry is currently facing delays when establishing letters of credit to import materials for finishes. An additional major hindrance is the freezing of importation of some vital raw materials for the construction sector.
However, the Sanken Group has been able to structure a Usance LC facility through their bankers and an off-shore partner to overcome this foreign exchange outflow restriction whilst ensuring an uninterrupted inflow of imported raw materials necessary for Capitol TwinPeaks, the project has been able to vastly reduce the strain on import payments affecting the real estate contribution to national growth. Capitol TwinPeaks has been able to continually inject foreign exchange into the local economy through foreign currency investments made directly by the project’s expatriate and foreign buyers.
Concluding, Chairman, Sanken Group – Mahen Weeresekera noted “We commend HNB and People’s Bank for their positive approach to the opportunity to partner with Sanken Group as we go forward in the construction process to provide a completed project. Through our timely decision-making, we are able to ensure a final, quality product for our customers, whilst easing the strain on a currently recuperating economy.”
Resulting from the Sanken Group’s forward-thinking, the present and future clientele of Capitol TwinPeaks can be reassured that the Sanken Group’s Contractor and Developer partnership shares the common goal of ensuring the completion of the project, through a multifaceted approach in overcoming financial and material challenges, currently apparent across the globe.