Sri Lanka’s state owned hospitality ventures to undergo restructuring process
Selendiva Investments is reportedly focusing on the restructuring of Sri Lanka’s state-owned hospitality ventures like Hilton Colombo and Grand Hyatt Colombo, according to Selendiva CEO Shamahil Mohideen.
Mohideen has told The Morning after the company had received Cabinet approval to implement three exclusive investment portfolios.
Selendiva Investments Ltd., as a holding company, does not operate any business activity such as manufacturing a product or providing a service; however, it acts as a parent company that holds assets, the news report has stated. Thus, the initial ventures of Hilton Colombo, Grand Hyatt Colombo, and the Grand Oriental Hotel will be brought under the purview of Selendiva Investments, Mohideen has said.
“Our mandate is basically to restructure these institutions, which includes operation and capital, in order to get optimum benefits and performance,” Mohideen has been quoted as saying, referring to the aforementioned institutions.
Apart from the said restructuring of the institutions, the company also hopes to expand other institutions in the hospitality industry, as well as to capitally restructure them on the Public-Private Partnership (PPP) model instead of the government of Sri Lanka merely privatising the institutions, he has explained.
According to the report, the PPP model involves collaboration between privately-owned companies and the Government for a financial project under a concession of tax or some other operating revenue with protection from liability or partial ownership rights on nominal and public services.
Mohideen has further noted that Selendiva looks forward to working with the private sector, especially investors, and that he firmly believes that the private sector is the “engine of our (Sri Lanka’s) economic growth.”
He has added that due to the scarcity of the capital investments of the Sri Lankan government, “we (Selendiva Investments) are bidding for the assistance of the private sector to come in and join hands with the Government to improve these assets.”
Therefore, Selendiva has stated it welcomes investors, as it needs capital investments the most.
Responding to the implementation of the three approved investment portfolios, Mohideeen has observed that at the moment the investment holding company is in the process of assessment, with Government assistance, to ensure that the fair use of the assets are distinctly reflected in the balance sheets.
OSL take:
Sri Lanka’s tourism industry was one of the fastest growing economic sectors in the country when the global Covid 19 pandemic lockdown last year prevented global travel. However, the country’s tourism industry started to show a gradual increase in tourist arrivals to the country when the borders were re-opened in January this year. Foreign travellers to the country are also expected to increase with Sri Lanka fast becoming a business hub in the South Asian region and being listed as a must visit destination by several leading global travel publications. Foreign businesses/investors could therefore confidently explore business/investment opportunities in Sri Lanka’s tourism industry.
| Article Code : | VBS/AT/20210528/Z_4 |