Sri Lanka’s Ceylon Hotels Corporation and China’s CHEC JV to enter Maldivian leisure market
Ceylon Hotels Corporation Plc of Sri Lanka has announced that it will build a US$ 50 million resort in the Maldives through a joint venture (JV) with a unit of China Harbhour Engineering Company (CHEC).
Accordingly, Ceylon Hotels Maldives (Pvt) Ltd has been formed as a 50/50 joint venture with Zhen Hua Engineering Company Ltd (ZHEC), which is a subsidiary of CHEC, Ceylon Hotels Corporation has stated in a stock exchange filing
Ceylon Hotels Maldives is fully owned by United Hotels Co Ltd, which is 67 percent owned by Ceylon Hotels Corporation.
The joint venture will develop a 50 to 100 room resort in Ambara Island in Vaavu Atoll in the Maldives.
The Company has further stated that Sanjeev Gardner, Lakshman Samarasingh and Priyantha Maddumage who are directors of Ceylon Hotels Corporation will also serve as directors of Ceylon Hotels Maldives.
The formation of a joint venture between a Sri Lankan leisure company and a Chinese construction company to engage in a business venture overseas is a positive sign since local as well as foreign investors could look at forming similar ventures to enter overseas markets. Given Sri Lanka’s strategic location in the Indian Ocean region as well as the sting trade relations with other Asian countries, the island nation could be used as the base for foreign investors to explore markets in other countries.
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