NPP accuses Govt. of attempting to sell Hilton at undervalued price

 Wasantha Samarasinghe

• Voice Against Corruption (VAC) convenor Wasantha Samarasinghe says hotel was initially valued at $ 124 m but is now appraised at $ 55.5 m
• Questions how valuation dropped given recent trend of rupee appreciating against US dollar
• Accuses senior officials for facilitating questionable deal to raise funds for upcoming elections

The National People’s Power (NPP) affiliated Voice Against Corruption (VAC) convenor Wasantha Samarasinghe has accused the Government of attempting to sell the Hilton Hotel in Colombo at a price significantly below its original valuation.

Addressing a press conference yesterday, Samarasinghe said the star-class hotel was initially valued at $ 124 million but is now appraised at $ 55.5 million, marking a significant decline in just one year. 

He questioned the apparent sharp drop in the hotel’s valuation, especially given the recent trend of the Sri Lankan Rupee appreciating against the US dollar.

“How could the valuation fall so dramatically? A year ago, the dollar was worth Rs. 330, whereas now it’s Rs. 310. How is it possible for the hotel’s value to have plummeted by 50 to 60%?” Samarasinghe asked.

He also alleged that the current selling price of $ 41.5 million is even lower, putting The Hilton Colombo boasting 300 rooms on seven acres of prime property at risk of being sold at this undervalued price.

Samarasinghe accused members of the President’s office, including Senior Advisor to the President Sagala Ratnayake and other senior officials, of facilitating corruption. He also claimed that the hotel was being sold to a company known for its seedy history of tax evasion and fraud.

Samarasinghe also charged the transaction is deeply corrupt and alleges it is being orchestrated by top Government officials to raise funds for the upcoming election.

Last week, the Government revealed that Melwa Hotels and Resorts Ltd. was the only company prequalified to bid on the sale of the Government of Sri Lanka’s shares in Hotel Developers (Lanka) Ltd. (HDL), which owns the Hilton Colombo.

The State-Owned Enterprises Restructuring Unit stated that the Ministry of Finance had invited Expressions of Interest in October 2023 for the divestiture of the Government’s stake in HDL.

Nine responses were received, and following evaluation by the Cabinet-appointed Special Project Committee and the Special Cabinet-Appointed Negotiating Committee, four bidders were selected for the Request for Proposal stage.