Press briefing of Cabinet Decision taken on 2016-08-16

Helanco Hotels & SPA (Pvt) Ltd - Reduction of Stated Capital

- A sum of Rs.18.5 billion was invested by Sri Lanka Insurance Corporation, Employees Provident Fund (EPF) and Litro Gas Lanka Ltd., in the equity of Canwill Holdings (Pvt) Ltd., for the purpose of construction of Grand Hyatt Colombo Hotel through its fully owned subsidiary Sinolanka Hotels & Spas (Pvt) Ltd. and the construction works of the hotel were commenced in the year 2012. While its construction activities were being done, having made a decision to invest Rs.4 billion to construct another hotel called 'Hyatt Regency' in Hambantota area, under the Helanco Hotels & SPA (Pvt) Ltd. which is affiliated to the said company, a sum of about Rs.315 million has been spent for the purpose, although no such construction activities had taken place. Accordingly, the proposal made by Hon. Kabir Hashim, the Minister of Public Enterprise Development, to invest the funds set apart for the construction works of the 'Hyatt Regency' Hotel, for the balance construction work of the Grand Hyatt Colombo Hotel, was approved by the Cabinet. It was also decided to take action to examine into the matters pertaining to the use of funds of the public institutions for commercial enterprises outside their basic objectives.