State run Sri Lanka hotel sales within 6-months: report
Oct 11, 2018 11:34 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT- Sri Lanka will sell two of the state-owned hotel companies within the next six months to raise around 500 million dollars, the country's state finance minister was quoted saying in a media report.
“We’re going through the legal hoops of preparing (the sales),” Eran Wickramaratne was quoted by Reuters.
“It will maybe take six months to get over that,” he said.
Sri Lanka will be going through the peak foreign debt maturity period in 2019 and the proceeds from the hotel sale are expected to finance repayments.
The government is looking to sell 51 percent of Hotel Developers PLC which is the holding company for the 350-room 5-star hotel currently run by Hilton International under a management contract.
All shares of Canwill Holdings (Pvt) Ltd, the holding company for a 458-room, 100 serviced apartment 5-star hotel currently under construction, for which management will go to Hyatt, is expected to be sold.
The government has selected a transaction advisor to find investors for the hotels. The shares are to be sold on a special board at the Colombo Stock Exchange.
Sri Lanka would also reopen bidding for national carrier Sri Lankan Airlines, probably in a few months, Wickramatne said. (Colombo/Oct11/2018)