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Sri Lanka to set up state real estate holding company for Hilton, Hyatt, GOH

ECONOMYNEXT – Sri Lanka will set up a holding company owned by the Treasury, Bank of Ceylon and Sri Lanka Insurance Corporation to control three state-run hotels, the state information office said.

Hotel Developers Pvt Ltd, a listed company that was expropriated in 2011, which houses Colombo Hilton; Canwill Holdings, which controls a half built building where a Grand Hyatt is supposed to come up and Grand Oriental Hotel, which is currently owned by the Bank of Ceylon will be included.

Canwill is a company controlled by Sri Lanka Insurance Corporation.

The setting up of a separate holding company will allow the properties to be developed without resorting taxes or government borrowing.

The cabinet has cleared a proposal by Prime Minister Mahinda Rajapaksa to place the firms under the new holding company.

There were also other assets including the Lotus Tower. (Colombo/Mar05/2020)