Agreement between Sri Lanka Cricket and Pallekelle Sports Complex

SRI LANKA CRICKET has entered into a Memorandum of Understanding with ZARARA SPORTS (PRIVATE) LIMITED, of Level 7, West Wing, Ceylinco House Janadhipathi Mawatha Colombo 01, who is the lawful owner of the party completed Pallekelle Sports Complex in Kandy (Which will be known as Kandy International Cricket Stadium) with a view to purchasing 100% of its shares, pending the execution of the share sale, which will take place within 60 days of the MOU signed.

ZARARA SPORTS (PVT) LIMITED had previously entered into an agreement with the Board of Investment Sri Lanka to construct an International Cricket Stadium at this complex at a cost of

Rs. 600,000,000/- for which the BOI has leased out this complex to ZARARA SPORTS for a period of 50 years.

The purported Interim Committee of (BCCSL) had signed a contract with ZARARA SPORTS (PVT) LTD to ensure, the participation of the Sri Lanka Cricket team in the One Day and International Cricket Tournaments organized and conducted by ZARARA at the said venue for a minimum period of 3 consecutive years to be effective from the date of commissioning the stadium, and to grant ZARARA the right to host and conduct one day international Cricket Tournaments at the said venue for a period of 10 years. Also to permit ZARARA to retain all media rights, marketing, campaigning and all promotional activities connected with the one-day international tournaments organized and conducted by ZARARA.

However, the Present Executive Committee, of SRI LANKA CRICKET were able to negotiate an understanding, that the contract signed between SRI LANKA CRICKET and ZARARA SPORTS will eventually lead to a buy-back agreement, which means SRI LANKA CRICKET will be executed for the full ownership of the Stadium for which negotiation are been made with a foreign bank in obtaining a loan facility for a repayment of 10 years.

ZARARA SPORTS will continue with the construction of the stadium, based on the BOI and relevant authorities' approved designs and structural plans under the joint supervision of ZARARA SPORTS and SRI LANKA CRICKET for which both parties have formed a project Committee and on completion of the construction of the project ZARARA SPORTS will present the certificate of completion to SRI LANKA CRICKET.

SRI LANKA CRICKET will take over the repayment of the entire of the loans obtained by ZARARA SPORTS of Rs. 400 million for this purpose from its banks.

The Kandy International Cricket Stadium is expected to be ready by August 2004 for International Cricket.