COLOMBO, Sri Lanka – August 13, 2026 – The Government of Sri Lanka (GOSL) has taken a significant step forward in its strategic divestiture of Canwill Holdings (Pvt) Limited, the parent company of prominent hospitality ventures Sinolanka Hotels & Spa (Pvt) Ltd and Helanco Hotels & Spa (Pvt) Ltd. The Ministry of Finance, Planning and Economic Development announced yesterday, August 12, 2026, that five pre-qualified bidders have been selected to advance to the crucial Request for Proposal (RFP) stage of the divestiture process.
Background to the Divestiture
The divestiture initiative commenced with the issuance of a Request for Expression of Interest (REOI) on December 24, 2025. This move by the GOSL, through the Ministry of Finance, Planning and Economic Development, sought to identify credible investors for its stake in Canwill Holdings. The deadline for submitting responses to the REOI was set for March 16, 2026, at 14:00 SLST.
Following a robust initial phase, the Ministry confirmed that it received responses from a total of eight Interested Parties (IPs), signalling strong market interest in Sri Lanka’s hospitality sector assets.
Pre-Qualified Bidders Emerge
After a thorough evaluation process conducted in accordance with the REOI guidelines, five out of the eight interested parties have successfully met the stringent qualification criteria. These entities have now been designated as Pre-Qualified Bidders and are officially invited to participate in the second, and arguably most critical, stage of the divestiture: the RFP stage. This stage will involve the submission of detailed proposals and bids.
The five Pre-Qualified Bidders are:
- Chalet Hotels Limited (India)
- Juniper Hotels Limited (India)
- Consortium relating to Phoenix Ventures Private Limited (Sri Lanka) and Bluestone Capital Private Limited (Sri Lanka)
- Ceylon Steel Corporation Limited (Sri Lanka)
- Consortium relating to EML Consultants PLC (Sri Lanka) and Kimetal S.r.L (Italy)
Implications for Sri Lanka’s Investment Landscape
The progression of these diverse national and international entities to the RFP stage underscores the confidence in Sri Lanka’s economic potential and its burgeoning tourism sector. The inclusion of leading Indian hospitality players, alongside strong local consortia and an international partnership, highlights the broad appeal of Canwill Holdings’ assets. This divestiture is expected to inject fresh capital and expertise into the country’s hotel industry, potentially boosting employment and enhancing Sri Lanka’s appeal as a premium travel destination.
The GOSL’s move to privatize state-owned enterprises is part of a broader strategy to streamline government operations, reduce the fiscal burden, and encourage private sector-led growth. The successful divestiture of Canwill Holdings will serve as a key indicator of investor sentiment and the government’s commitment to economic reforms.
Further updates on the divestiture process, including timelines for the RFP stage and final bids, are anticipated from the Ministry of Finance, Planning and Economic Development as the process unfolds.
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