Tuesday Feb 03, 2026
Tuesday Feb 03, 2026
Tuesday, 3 February 2026 02:22 - - {{hitsCtrl.values.hits}}
The Government has set a minimum net worth or financial capability threshold of $ 50 million for interested parties seeking to participate in the divestiture of Canwill Holdings Ltd., according to clarifications issued by the Finance, Planning and Economic Development Ministry.
The requirement is set out in the minutes of the Pre-Expression of Interest (Pre-EOI) meeting held on 21 January, released as a Frequently Asked Questions (FAQ) document in relation to the Request for Expression of Interest (REOI) dated 24 December 2025.
The Ministry clarified that participation at the Pre-EOI meeting is not a prerequisite for submitting an EOI and will not result in disqualification. Interested parties have been advised to rely on the REOI for eligibility requirements and the divestiture process, and to consult the published FAQ before seeking clarifications.
Under the eligibility criteria, all bidders must demonstrate a minimum net worth or financial capability of at least $ 50 million. Investment funds may meet this threshold through assets under management or committed capital of not less than $ 50 million, supported by audited financial statements or certifications from authorised fund managers, trustees, or administrators.
The Government has reiterated its intention to divest its entire 100% shareholding in Canwill Holdings Ltd., the parent company of Sinolanka Hotels and Spa Ltd., and Helanco Hotels and Spa Ltd. The transaction will be a share sale, not an asset-only acquisition, and will be conducted through a competitive Request for Proposal (RFP) process in line with the approved Divestiture Guidelines.
The FAQ document states that no indicative valuation guidance will be provided at the EOI stage. The RFP will be conducted as a transparent competitive bidding process, with all interested parties, both local and international, required to undertake their own independent due diligence in preparing bids. The Government has reserved the right to impose a floor price at the RFP stage if deemed necessary.
Clarifications also confirm that the 9.42-acre leasehold beachfront land in Hambantota held by Helanco Hotels and Spa has expired due to non-initiation of construction. The Government has said it does not commit to extending the lease.
Information on legal, financial, and contractual liabilities, including bank loans, guarantees, trade payables, Government dues, taxes, contingent liabilities, litigation, arbitration, and regulatory actions, will be disclosed only at the RFP stage to pre-qualified bidders, subject to execution of a non-disclosure agreement (NDA). A legal due diligence report on a non-reliance basis will be made available, though bidders have been advised to conduct their own legal and financial assessments using professional advisers.
The Government has said it will adopt appropriate mechanisms to settle past liabilities of the company in due course. Details on staff headcount, salary obligations, funding arrangements, structural condition reports, safety issues, and the operational status of lifts, escalators, and mechanical, electrical, and plumbing systems will also be made available during due diligence, including through site visits where permitted.
On regulatory matters, the FAQ notes that bidders should seek independent legal advice regarding the issuance or transfer of any casino licence associated with the project.
Canwill Holdings was incorporated in December 2011 as a fully State-owned enterprise (SOE) to invest in the hospitality and tourism sector, operating as a holding company for Sinolanka Hotels and Spa and Helanco Hotels and Spa.
Sinolanka was developing a 47-storey hotel and serviced apartment project in Colombo 3, comprising 458 hotel rooms and 100 serviced apartments built to Grand Hyatt specifications. The structure and façade were largely complete, with substantial capital expenditure incurred and most approvals in place. The project had been designated a Strategic Development Project, making it eligible for tax concessions during both construction and operations.
Canwill received Rs. 18.5 billion in equity funding from Sri Lanka Insurance Corporation, Litro Gas Lanka, and the Employees’ Provident Fund (EPF), with Sri Lanka Insurance holding 46% of the shares and the balance split between Litro Gas and the EPF.
The current divestiture follows earlier efforts to exit the Government’s investment. In 2024, six companies, largely from India, were pre-qualified to submit RFPs. At the time, the then SOE Restructuring Unit said EOIs were evaluated in line with the REOI and the Special Guidelines on Divestiture of SOEs approved by the Cabinet of Ministers, with Deloitte India was appointed as transaction adviser for the process.
