Cabinet approves holding company to control 3 state run hotels

Colombo (News 1st) - A cabinet decision has been reached to set up a holding company owned by the Treasury, Bank of Ceylon and Sri Lanka Insurance Corporation to control three state-run hotels. 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 to taxes or government borrowing. The cabinet has cleared a proposal by Prime Minister Mahinda Rajapaksa to place the firms under the new holding company.