I’ve honestly never liked the Hilton. Photo by Dhammika Heenpella
What assets are getting nationalized in Sri Lanka? According to Lakbima News (via Jeyaraj), it’s Hotel Developers (Lanka) PLC, the owning company of Colombo Hilton. That company was run pretty dubiously, I guess, but there are also properties and assets being taken from sugar, tractor, and apparel companies galore. 37 institutions in all, including private ones.
The underperforming enterprise named is Hotel Developers (Lanka) PLC, the owning company of Colombo Hilton. The underutilized assets named are the Pettah property of Charmers Granaries; the Badulla properties of Colombo Commercial Company; the Pettah and Narahenpita properties of Lanka Tractors Ltd; land belonging to Pelwatte Sugar Industries Ltd; and land owned by Sevanagala Sugar Industries Ltd.
Also, the property of:
Is getting seized, bitches. The reason could be that “Once passed, the law will free up thousands of acres of land around the country for development, including prime plots in Colombo and its suburbs,” or that people in the government want to make a bit of money. Probably a bit of both. I guess that would answer the why.
As an example, it sounds atrocious seizing the Hilton, but that franchising company – Hotel Developers (Lanka) PLC – has been on the default board of the stock exchange for years, meaning it hasn’t filed annual reports or financials. The accumulated loss there is like Rs. 10.3 billion (FT). They basically hadn’t paid rent to the government for years and were recently put under majority government control.
The other companies I don’t know.
All over I guess. Some of the big plums seem to be Colombo.
The underutilized assets named are the Pettah property of Charmers Granaries; the Badulla properties of Colombo Commercial Company; the Pettah and Narahenpita properties of Lanka Tractors Ltd; land belonging to Pelwatte Sugar Industries Ltd; and land owned by Sevanagala Sugar Industries Ltd.
Like nowish I guess. The bill was highly dubious, drafted by a private company and effectively sealed until the last minute to preclude debate.
Dubiously. This bill wasn’t done the right way, but then, neither was the war. I think most people won’t care how it’s done as long as the government improves the economy. I think the model they’re going for is Singapore but with more corruption. Is that China?
Basically, the government has been rolling back privatizations (Water’s Edge, Sri Lanka Insurance) and taking control of companies and lands for years. This bill formalizes the practice. The Lakbima report by Namini Wijedasa is worth a read (I read it on DBS Jeyaraj’s blog). That paper is owned by a government MP so I assume whatever bill they got is legit.