ECONOMYNEXT – Sino Lanka Hotels and Spa, a state-run firm that is building a 200 million US dollar hotel to house a Grand Hyatt in Colombo will raise US75 million dollars to complete the project, an official said.
Sino Lanka Hotels and Spa which is controlled by state-run Sri Lanka Insurance Corporation, through Canowill Holdings (Pvt) Ltd has been mired in controversy and allegations of fraud.
SLIC had invested 8.5 billion rupees, its subsidiary Litro Gras had invested 5.0 billion rupees and Employees Provident Fund had invested another 5.0 billion rupees.
An initial plan to house a Hyatt has been upgraded to a Grand Hyatt, a 5-star plus hotel, making the project cost go up from 18.5 billion rupees to 27 billion rupees.
Sri Lanka’s NDB group was expected to syndicate a 75 million dollar loan for to raise the balance finance.
"We have spent 13 billion rupees," Chairman Hemaka Amarasuriya said. "We have something like 4 to 5 billion rupees in hand.
"We have to borrow the balance. For that we are having this consortium of banks for 75 million dollars. We will do it when we need it. We will borrow it at the right time."
Another Hyatt hotel to be built in Hambantota has been scrapped, officials said. Though nothing has been built around 300 million rupees had already been spent on the project, they said.
Corrected : last paragraph Rs300mn not USD300mn.