Sri Lanka to divest luxury hotel firms after port sale

Sri Lanka Wednesday announced plans to sell off two state-owned luxury hotel companies following its billion-dollar privatisation of a loss-making port.

Government spokesman Rajitha Senaratne said ministers approved the seeking of bids for a 51 percent stake in Hotel Developers (Lanka) plc, whose luxury hotel in Colombo is managed by Hilton. He did not give a value for the company, which occupies prime land in the heart of Colombo.

The government will also sell all of Canwill Holdings (Pvt) Limited, which owns a 49-floor building that will operate as Grand Hyatt Colombo once construction is completed.

Canwill is currently incorporated as a private company, but its equity is held by three state entities -- the country's main insurance company and its subsidiary and the main pension fund.