The Sri Lanka Canwill Holdings sale is advancing as the Ministry of Finance prepares to engage prospective investors ahead of the government’s planned divestment, signalling renewed momentum in the country’s broader State-Owned Enterprise reform agenda.
Sri Lanka Canwill Holdings sale moves forward with pre-EOI investor meeting
Sri Lanka’s Ministry of Finance, Planning and Economic Development has confirmed plans to meet with interested investors ahead of the proposed divestiture of Canwill Holdings (Pvt) Ltd, the parent company of Sinolanka Hotels & Spa (Pvt) Ltd and Helanco Hotels & Spa (Pvt) Ltd. The development marks another step in the government’s effort to reduce state ownership in commercial ventures and improve efficiency across key sectors of the economy.
According to an official statement, the ministry will conduct a Pre-Expression of Interest meeting in connection with the proposed transaction, providing potential investors with an opportunity to seek clarification and raise questions regarding the Request for Expressions of Interest and the transaction framework. The meeting is scheduled to be held virtually on January 21 at 12 pm Sri Lanka time, ensuring access for both local and international participants.
The Sri Lanka Canwill Holdings sale forms part of the government’s ongoing State-Owned Enterprise reform and divestment programme, which aims to restructure public sector participation in commercial activities. Authorities have stated that the government intends to divest its entire shareholding in Canwill Holdings, reflecting a policy shift toward private sector participation and capital mobilisation, particularly in asset-heavy industries such as tourism and hospitality.
Canwill Holdings was incorporated in December 2011 with a mandate to invest in Sri Lanka’s tourism and hospitality sector, an industry viewed as a key contributor to foreign exchange earnings and employment. The company’s shareholders include major state-linked institutions such as Sri Lanka Insurance Corporation, the Employees’ Provident Fund, and Litro Gas Lanka. Through its subsidiaries, the company holds significant hospitality-related assets, including ownership of the Grand Hyatt building located in Colombo’s central business district.
The Grand Hyatt project has long been viewed as a strategically important hospitality development due to its location and scale. Its inclusion in the Sri Lanka Canwill Holdings sale is expected to attract interest from investors seeking exposure to premium urban tourism assets at a time when Sri Lanka is attempting to rebuild confidence in its investment climate following recent economic challenges.
The government initially called for expressions of interest in 2023 under the previous administration. However, the divestment process was paused amid policy transitions and broader economic restructuring efforts. Last year, the current government approved the resumption of the sale, reaffirming its commitment to privatisation and fiscal consolidation as part of discussions with international creditors and development partners.
Officials have indicated that the Pre-EOI meeting will allow interested parties to better understand the scope of the transaction, the assets involved, and the expectations of the divestment process. By offering a structured engagement platform, authorities aim to promote transparency and encourage competitive participation, which is considered essential to achieving fair market outcomes.
The Sri Lanka Canwill Holdings sale also reflects a wider push to rationalise the state’s role in commercial enterprises. Policymakers have repeatedly highlighted the financial burden posed by underperforming or capital-intensive state holdings and the need to redirect public resources toward social spending, infrastructure, and economic stabilisation measures. Divestments are therefore positioned as part of a longer-term strategy to strengthen public finances while unlocking private sector investment.
Market observers note that investor appetite will likely depend on clarity around valuation, governance structures, and future operational flexibility. The tourism sector’s recovery trajectory, regulatory stability, and macroeconomic outlook are also expected to influence participation levels. The ministry’s decision to engage investors early in the process is seen as an attempt to address such concerns and sustain confidence in the reform programme.
As Sri Lanka continues its privatisation drive, the outcome of the Canwill Holdings transaction is likely to be closely watched as a signal of the government’s ability to execute complex asset sales. A successful process could set an important precedent for future divestments, reinforcing policy credibility and supporting longer-term economic recovery efforts.