Sri Lanka flexible for investor to start Grand Hyatt operations – Minister

ECONOMYNEXT – 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. (Colombo/Oct 27/2023)