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so I should be fine to remove the blue paint, then skim with Limelite High Impact Finishing Plaster?

Just bought a house and wanted to get rid of lining paper to paint walls properly. This is what it looks like at the moment. (Attached) Had a bit of research and seems that top part is lime plaster, but not sure about bottom half? Is it cement or gypsum? Should I sand all this blue paint...