Construction work on the ‘Hyatt Regency’ Hotel at Hambantota is to be halted and the funds channeled to the construction of the ‘Grand Hyatt Colombo’.
A proposal put forward by State Enterprises Development Minister Kabir Hashim to implement this has received Cabinet approval.
Construction work on the Grand Hyatt Colombo began in 2012 with the state institutions Sri Lanka Insurance Company Ltd, Employees Provident Fund and Litro Gas Ltd investing Rs. 18.5 billion with Kanvill Holdings (Pvt) Ltd, through its subsidiary Sinolanka Hotels and Spa (Pvt) Limited.
While construction work had been in progress, it had been decided to invest an additional Rs. 04 billion in constructing another hotel under the name ‘Hyatt Regency’ in the Hambantota area through another subsidiary Helanco Hotels and Spa (Pvt) Ltd. Though a sum of around Rs. 315 million had been spent on it, no construction work had been visibly carried out, claims the Government.
Meanwhile, the Cabinet has also decided to investigate into the funds invested by public enterprises in commercial ventures.