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)