Govt ready to complete Colombo Hyatt if no investor found
State Minister of Urban Development and Housing Arundika Fernando disclosed that the government is prepared to complete the stalled Colombo Hyatt Hotel project with the assistance of the treasury, if an appropriate investor is not found.
Addressing a media briefing, Minister Fernando said that the government is prepared to complete the project with assistance from the armed forces, financed by the treasury, as it had done with the historic Gafoor building in Colombo.
The Hyatt building was constructed during the tenure of former President Mahinda Rajapaksa’s government, utilizing $60 million in public funds sourced from state-owned entities Sri Lanka Insurance, the Employees Provident Fund, and Litro Gas Lanka Ltd.
The hotel development has utilized a significant plot of land in Colombo, raising concerns about its financial viability, with the Minister revealing that the project carries a remaining debt of US$ 35 million.
“This property is in a prime tourism location in Colombo with the American Embassy and luxury hotels in the vicinity. Although the property is being wasted, the government will not undervalue the project,” Fernando said, adding that at least US$ 150 million will be required to complete the project.
Construction was halted when former President Maithripala Sirisena assumed office in 2015, prompting an investigation into potential financial misappropriation associated with the project.
