#Sri Lanka #Colombo #Canwill Holdings #Sinolanka Hotels

Sri Lanka's Strategic Move: Divesting Canwill Holdings

The Government of Sri Lanka (GoSL) has announced its intention to divest the entirety of its stake in Canwill Holdings (Pvt) Ltd, the parent company of Sinolanka Hotels & Spa (Pvt) Ltd and Helanco Hotels & Spa (Pvt) Ltd. This strategic decision highlights the government's effort to encourage foreign investment and stimulate the local economy, particularly in the hospitality sector.

Overview of the Transaction

The divestiture process will be conducted through the Ministry of Finance, Planning and Economic Development. Notably, Deloitte Touche Tohmatsu India LLP (DTTILLP) has been appointed as the consultant for this transaction, tasked with overseeing and managing the intricate facets of the sale.

The government aims to attract potential investors who see the value in acquiring a stake in a renovated and strategically located hotel entity.

What is Canwill Holdings?

Canwill Holdings is recognized as a prominent player in the Sri Lankan hospitality market, primarily through its subsidiaries: Sinolanka Hotels & Spa and Helanco Hotels & Spa. The flagship property of Sinolanka, located in Colombo's Central Business District, is already acclaimed for its 5-star international standards. Completed with a remarkable 47-story structure, this establishment comprises 458 rooms and 100 serviced apartments. Set against the stunning backdrop of the Indian Ocean, it boasts spectacular views of the port city, including iconic landmarks such as the Galle Face Green and the Lotus Tower.

The Property and Its Advantages

The real estate is poised to become a significant asset for any future investor. Covering 2.32 acres of premium beachfront land, the site is not only architecturally impressive but also strategically located, providing easy access to Colombo’s business and leisure venues. This makes it an attractive spot for both business and tourism. The property’s design allows it to cater to a wide array of guests, from business travelers to tourists seeking luxurious accommodation by the sea.

Details of the Sale Process

The divestiture is expected to be executed in a two-stage process. Interested parties are encouraged to access the document detailing the invitation for expressions of interest at GoSL Treasury's Website. The deadline for submitting expressions of interest is set for February 16, 2026, at 2:00 PM Sri Lanka Standard Time.

Prospective bidders can contact personnel within the Strategy, Risk & Transactions division for more details. Key contacts include:

• - Sandeep Negi, Partner: [email protected], +91-9810853754
• - Arpan Seal, Associate Director: [email protected], +91-9004000274
• - Abhishek Kalupathirana, State-Owned Enterprise Restructuring Unit Lead: [email protected]

Significance for Sri Lanka

This move by the Sri Lankan government represents not just an opportunity to raise capital but also signals to foreign investors that the nation is committed to revamping and enhancing its tourism and hospitality industry. With expectations of increased economic activity and job creation, this divestiture is a pivotal step in forging a robust investment landscape in Sri Lanka.

As the Sri Lankan hospitality sector looks toward recovery and growth, the divestiture of Canwill Holdings could set a precedent for future privatization efforts, shaping a more lucrative environment for both local and international stakeholders.

In conclusion, the divestiture process is a significant development for Sri Lanka's economy, with the potential to attract further interest in the country's rich and diverse tourism sector. Industry insiders are keenly observing how this transaction unfolds and what it means for the broader market dynamics in the region.