Prospective investor for Sri Lanka’s Hyatt building shows interest in running a casino
EconomyNext: A prospective bidder for Canwill Holdings, a state company that owns Colombo’s half-build ‘Hyatt’ building, has inquired about the possibility of getting a casino license, according to questions asked at a pre-bid meeting.
Sri Lanka’s Finance Ministry has called expressions of interest to pre-quality bidders for the high rise which is bordering the Indian Ocean.
The investor bidders had asked whether a casino license would be issued or transferred to the new investor. The bidder was asked to get independent legal advice.
Prospective investors were also told that the land lease for 9.42 acres in Hambantota under a subsidiary called Helanco had expired and the government was not committing to extending the lease.
Investors had raised questions about a number of uncertainties, including about the validity of agreements with Hyatt.
They were told after pre-qualification such investors will be provided with confidential information to conduct due diligence, after signing a non-disclosure agreement.
Investors also asked whether tax holidays under the Strategic Development Project were still available.
The government was awaiting clarification from the Board of Investment on the SDB and other concessions that may be available, and further information will be provided ‘in due course’ to bidders that are pre-qualified.
Investors also sought information on any encumbrances on transferring shares, legal, financial and contractual liabilities that would pass on to investors and threatened litigation, arbitration and claims by suppliers or government entities.
They had asked about the condition of the half-built building, the status of lifts and escalators and electrical and plumbing.
The bidders will be given a chance to conduct due diligence after pre-qualification and relevant information will be shared after a non-disclosure agreement, they were told.
OSL take:
Sri Lanka’s fast and steadily growing tourism industry has opened many business/investment opportunities in entertainment and gaming sectors. Given Sri Lanka’s strategic positioning in the Indian Ocean region and being identified as a must visit tourist destination, there’s an increasing potential for Sri Lanka to be promoted as the new Macau, attracting high-spending tourists to the country. Realizing this potential, the Sri Lankan government has taken steps to introduce laws related to gaming, which are in the implementation phase. With Sri Lanka’s tourism industry on a steady growth path with many tourism concepts on offer, foreign businesses/investors could confidently explore the expanding business/investment opportunities in the industry and the expanding sectors in it. Given the growth and business potential in Sri Lanka’s tourism industry, foreign businesses/investors could also look at expanding operations through local collaborations.
| Article Code : | VBS/AT/20260216/Z_4 |