World Bank Group’s IFC to invest US$ 27 million in Sri Lanka’s Melwa Hotels and Resorts Private Limited

World Bank Group’s IFC to invest US$ 27 million in Sri Lanka’s Melwa Hotels and Resorts Private Limited

A subsidiary of the World Bank Group, the International Finance Corporation (IFC), is reportedly investing US$27 million in Sri Lanka’s Melwa Hotels and Resorts Private Limited to build three hotels across Sri Lanka which will be operated by Hilton Hotels.
According to reports, the investment will help Melwa Hotels, a subsidiary of steel manufacturer Melwire Rolling Private Limited, to develop three new hotels outside of Colombo, in Yala, Kosgoda, and Negombo, a statement said.
IFC had earlier said the funding will be for a 42-room hotel in Yala, a 196-room hotel in Kosgoda and a 96-room hotel in Negombo, reports further state.
“The investment will increase Sri Lanka’s capacity in the tourism sector, create jobs, and generate more foreign exchange,” the IFC has stated.
“In addition to the funding, Melwa will also benefit from IFC’s expertise and advice as we diversify in to tourism,” P. P Muruganandhan, Managing Director of Melwa, which is a new entrant to Sri Lanka’s tourism sector has been quoted as saying.
IFC Country Manager for Sri Lanka and Maldives, Amena Arif has said IFC will also provide advice to Melwa Hotels on how to manage environmental and biodiversity matters to minimize their environmental footprint.

OSL take:

The IFC, which is part of the World Bank Group, continues to provide financial support to Sri Lankan businesses due to the strength shown by the country’s overall economy. The growing confidence in Sri Lanka’s business climate coupled by the ease of doing business environment has pushed the IFC to support local businesses to expand. Given the confidence expressed in local companies by an international organization, it would make it worthwhile for foreign businesses/investors to explore opportunities to form partnerships/joint ventures with local businesses. Also, IFC support would further strengthen the growing tourism industry in Sri Lanka.

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Article Code : VBS/AT/09052018/Z_1

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