A prospective investor for Sri Lanka’s half-built Hyatt building in Colombo has expressed interest in operating a casino, according to discussions during a pre-bid meeting. The Finance Ministry is now reviewing queries raised by bidders regarding licensing, leases, and development incentives.
Prospective bidder for Sri Lanka Hyatt asks about casino license and investment terms
Sri Lanka’s Finance Ministry recently held a pre-bid meeting for prospective investors interested in acquiring Canwill Holdings, the state-owned company that owns the partially constructed Hyatt building in Colombo. The high-rise, which overlooks the Indian Ocean, has attracted attention from investors seeking both hospitality and gaming opportunities.
At the session, one investor specifically inquired whether a casino license could be issued or transferred to the new owner. The Finance Ministry advised that bidders should seek independent legal counsel regarding regulatory and licensing matters.
In addition to casino licensing, prospective investors raised questions regarding land leases. The 9.42-acre site in Hambantota, owned through Canwill subsidiary Helanco, currently has an expired lease. Officials clarified that the government is not committing to lease extensions at this stage.
Bidders also sought clarity on contractual and operational uncertainties, including the validity of agreements with Hyatt International. They were informed that after pre-qualification, investors would receive confidential information for detailed due diligence, contingent upon signing a non-disclosure agreement (NDA).
Tax incentives were another focus of investor questions. Participants asked whether tax holidays under the Strategic Development Project (SDP) framework were still available. The government indicated it is awaiting further clarification from the Board of Investment on applicable concessions and would provide additional details in due course to pre-qualified bidders.
Legal and financial liabilities were also discussed. Investors sought information on any encumbrances affecting share transfers, as well as potential claims from suppliers, government entities, or arbitration proceedings. These clarifications aim to allow bidders to fully assess risks associated with the acquisition.
Operational considerations of the half-built structure were addressed as well. Investors inquired about the condition of lifts, escalators, electrical systems, and plumbing. Officials reiterated that post-pre-qualification, bidders would have the opportunity to conduct on-site inspections and comprehensive due diligence once NDAs are signed.
The Finance Ministry emphasized that while investors can ask preliminary questions, detailed data, including legal, financial, and technical documents, will only be shared with pre-qualified bidders. This step is designed to maintain confidentiality while ensuring transparency for serious investors.