MBSL's controversial hotel plans in Jaffna revived

Plans by the state-owned Merchant Bank of Sri Lanka PLC (MBSL) to re-commence the Rs.450 million hotel project in Jaffna have resurfaced based on the possibility that people's resistance is likely to subside this year. The project has already been delayed by two years.

The project to construct a hotel in close proximity to the Nallur Kovil is likely to get underway this year, MBSL Chairman M.R. Shah told the Business Times.

"In the event we overcome resistance from the people," he said, "we would consider starting the hotel or some other project".

MBSL has already drawn up plans for the project and were ready to listen to the people and have consulted them even eight months back.

Mr. Shah said that they had held discussions with the people during which the residents understood the situation.

The residents were informed of the plans to set up the hotel and its benefits to the locality and the improvement to their livelihoods in Jaffna.

But with no Municipal Council approval granted yet, authorities are planning on continuing the dialogue with the residents to help obtain their consent to construct the hotel.

However, it is noted that since the Archeological Department has cleared the land for the project they would go ahead once they overcome the resistance.

In April 2011, the government was close to calling it quits after the hotel project continued to face opposition from residents.

This came in the wake of a recent unrest staged in the area against the construction of the hotel in a very sensitive location in close proximity to the historically renowned Nallur Kovil.

The controversial Hotel Nallur that commenced construction in April 2009 by the MBSL is learnt to have started out with no concrete approval from local authorities.

Problems started based on concerns that the project was being constructed within the reservation of the surrounding archaeological area designated by the Archaeological Department for the Nallur Kovil.

But, according to regulations the hotel project cannot be constructed within the designated area of the archaeological site but must be situated 100 metres away.

Construction of the hotel was to be completed within a period of 8-10 months and plans to develop this hotel came about following an issue of disputed property in Jaffna owned by The Finance Co. (TFC), a Ceylinco company now managed by MBSL.

Over 500 residents of Jaffna demonstrated in protest in 2010 against the construction of the hotel in an area of cultural and historical significance.

This temple is a socially important institution for the Sri Lankan Tamils Hindu identity of north Sri Lanka. In the Sri Lankan Tamil diaspora, many temples have been built in Europe and North America using the same name as a cultural memory.