Govt to Hold Pre-EOI Meeting for Canwill Holdings Divestiture 📈
The Ministry of Finance has scheduled a virtual pre-Expression of Interest (EOI) meeting for 21 January 2026 to facilitate the 100% divestiture of Canwill Holdings Ltd, the parent entity behind the stalled Grand Hyatt Colombo project.
• Transaction Details:
The divestment follows a two-stage competitive process targeting local and international investors. The deadline for EOI submissions is set for 16 February 2026. Non-attendance at the virtual meeting will not disqualify potential bidders.
• Asset Profile:
- Sinolanka Hotels & Spa: Developing a 47-storey hotel in Colombo 3 with 458 rooms and 100 serviced apartments. The structure is largely complete but requires an estimated US$ 120 Mn (Rs. 36 Bn) for completion.
- Helanco Hotels & Spa: Holds 9.42 acres of beachfront land in Hambantota, originally intended for a Hyatt Regency.
• Financial & Sector Context:
Canwill Holdings received Rs. 18.5 Bn in equity from the Sri Lanka Insurance Corporation (46%), Litro Gas, and the Employees’ Provident Fund (EPF). The move is a critical part of the national SOE reform program to reduce state exposure in the hospitality & tourism sector and unlock private capital for stalled mega-projects.
• Historical Background:
A 2015 forensic audit revealed major irregularities and cost overruns. A previous divestiture attempt in 2024 saw interest from six firms, primarily from India, but the process has now been revived under fresh guidelines.