Grand Hyatt, Hilton, GOH under one State-owned property development body

• Government to create premium real-estate portfolio to bring high-end properties under one umbrella organisation
• Cabinet gives approval to proposal by PM
• New institution will be owned by Treasury, Bank of Ceylon, Sri Lanka Insurance Corporation

By Chandani Kirinde

The Government will create a premium real-estate portfolio to bring some of the high-end properties it owns, such as the Hilton, Grand Oriental, and Grand Hyatt Hotel, under one institution, in order to expand these establishments and improve their potential, Cabinet Co-Spokesman Minister Ramesh Pathirana said yesterday.

The proposal to Cabinet to set up the institution, made by Prime Minister Mahinda Rajapaksa in his capacity as the Minister of Finance, Economic and Policy Development, was approved on 4 March. The new institution will be owned by the Treasury, Bank of Ceylon, and Sri Lanka Insurance Corporation.

Pathirana said luxurious hotels and tourism-related assets are owned by State institutions such as the Treasury, Employees Provident Fund (EPF), Sri Lanka Insurance Corporation, Telecommunication Regulatory Commission (TRC), and Bank of Ceylon. He said by incorporating all such assets into one umbrella organisation, there is potential to further expand these establishments in the future. “Since it is not advisable to use State income or Government borrowings to develop such property and assets, it will be easier to secure provisions through a high-asset institution like the proposed firm,” he said.Cabinet approved the proposal to take necessary steps to bring Canwill Holdings Ltd. (Grand Hyatt), Hotel Developers Ltd. (Hilton), and Grand Oriental Hotels under this institution.