Three leading state-owned hotels in Sri Lanka to be consolidated under one state company

Three leading state-owned hotels in Sri Lanka to be consolidated under one state company

Three leading state-owned hotels in Sri Lanka to be consolidated under one state company
Courtesy/News Source: colombopage.com

The Ministry of Finance has decided to merge three state-owned leading hotels under one company.

State-owned Grand Hyatt, Hilton and Grand Oriental Hotel will soon be controlled under a holding company owned by the Treasury, Bank of Ceylon and Sri Lanka Insurance Corporation.

At the Cabinet of Ministers meeting on March 04, it has been noted that some of the most valuable hotels and other tourism related assets reside within the General Treasury, Employee’s Provident Fund (EPF), Sri Lanka Insurance Corporation (SLIC), Telecommunication Regulatory Commission of Sri Lanka (TRCSL) and the Bank of Ceylon.

Hotels such as Grand Hyatt, Grand Oriental, Hilton as well as the Shopping Mall of the Lotus Tower are such assets.

Prime Minister Mahinda Rajapaksa in his capacity as the Minister of Finance, Economy and Policy Development has proposed to create a most valuable premium real - estate portfolio by bringing all such properties under a single entity. It has also been observed that there is a possibility of expanding the said entity by the inclusion of similar assets.

“Further, it would be easy to secure required funds for the development of such properties and assets through the proposed entity possessing valuable assets since it would not be optimal to use government revenue or government borrowings for the same,” a cabinet statement said.

Accordingly, the proposal made by the Prime Minister to bring Canwill Holdings Pvt. Ltd. (Grand Hyatt), Hotel Developers Pvt. Ltd. (Hilton) and Grand Oriental Hotel under a single entity jointly owned by the General Treasury, Bank of Ceylon and Sri Lanka Insurance Corporation, was approved by the Cabinet.