Govt contemplates completing stalled Hyatt Hotel project with army assistance
May 24, Colombo (LNW):In response to the delays in several high-profile urban development projects like Colombo Hyatt Hotel, State Minister for Urban Development and Housing, Arundika Fernando said If an appropriate investor does not emerge, the government is prepared to proceed with completion with the assistance of the armed forces, with financing from the treasury.
He noted that valuable government land had been allocated for ventures such as the Colombo Hyatt Hotel, Krrish, and Destiny projects; however, investors have abandoned these projects, leaving them incomplete.
“The Colombo Hyatt Hotel project has particularly strained public resources, with USD 60 million in public funds already invested and an outstanding debt of USD 35 million. This project occupies a significant plot of land in Colombo,” he pointed out.
As such, Minister Fernando emphasized that if new investors do not step forward, the government is ready to take over the completion of these projects.
Sri Lanka is ready to be flexible on the construction cost of the Grand Hyatt building if an investor is ready to complete the building, start operations, and repay a $35 million loan, State Minister for Urban Development and Housing Arundhika Fernando said.
Hyatt building was constructed by then president Mahinda Rajapaksa government with $60 million public money funded by state owned Sri Lanka Insurance, Employees Provident Fund, and Litro Gas Lanka Ltd.
Later it also borrowed $35 million for the construction, Fernando said, amid the construction cost alone doubled in the face of sharp depreciation of the currency and the building with the government failing to find an investor to complete the 48-floor building and start business.
“We are flexible on the $60 million,” Fernando said referring to the public money spent on the project.
“We are ready to give this to an investor who is ready to complete the construction, start the marketing and operations, and repay the $35 million loan.”“Thera are some issues and we are addressing the issues and trying to find an investor.”
Grand Hyatt is located near the new United States Embassy and in front of Cinnamon Grand, a high-end five-star hotel in the heart of Colombo.
The construction process was suspended when former president Maithripala Sirisena was elected as the country’s leader in 2015 with an investigation into financial misappropriation.
However, the building is yet to be completed and Fernando last year estimated the project needed further $90 million for the completion and start operation.
However, no investor has come forward so far amid the island nation facing an unprecedented economic crisis
