By: Staff Writer
July 29, Colombo (LNW): The State-Owned Enterprise Restructuring Unit (SOERU) recently clarified misunderstandings about the divestiture of Hotel Developers Lanka (HDL) Ltd and Sri Lanka Telecom PLC (SLT).
The land associated with the HDL transaction is 4.61 acres, contrary to the claims of seven acres. This land is leased to HDL until 2111.
An additional 1.875 acres will be leased to HDL until 2111 for Rs.4.4 billion, pending Cabinet approval. This land includes restaurants, a swimming pool, a gym, and parking facilities.
The decision to allocate this land was made by the Cabinet of Ministers on March 21, 2022. Despite recent upgrades, the Colombo Hilton remains a five-star property, not a seven-star.
The government chief valuer confirmed that the November 19, 2022, valuation of HDL was lower than the July 2024 valuation.
A financial offer for HDL has been received from Melwa Hotels & Resorts (Pvt.) Ltd, the only entity to submit an offer in July. Negotiations are ongoing, and the final price is yet to be determined.
The SOERU emphasized the transparency and integrity of the divestiture process, denying any political interference. They stated that no politician or public officer has attempted to influence the divestiture of HDL or any other state-owned enterprise.
Valuations for SLT are ongoing and have not been finalized. The divestiture process adheres to Divestiture Guidelines approved by the Cabinet.
The SOERU denied allegations of manipulating SLT’s financial results to reduce its value. As a listed entity, SLT must comply with the continuous listing rules of the Colombo Stock Exchange, which require a board audit committee chaired by a director who is not the company’s chairperson. This committee ensures the integrity of the company’s financial statements.
A major foreign investor with a 45% stake in SLT, who also has significant board presence, is unlikely to agree to manipulate SLT’s value downwards.
The SOERU, in collaboration with the Telecommunications Regulatory Commission of Sri Lanka, resolved a long-standing spectrum issue that was affecting SLT’s performance. The new spectrum allocation is expected to significantly increase SLT’s value.
The SOERU has not been contacted by any organization or individual to clarify concerns. They highlighted their efforts to communicate with senior members and leaders of three major political parties about the SOE reform program. The SOERU has consistently released press statements at every significant stage of the divestiture process to keep the public informed.
The SOERU’s statements aim to dispel any misconceptions and reassure the public about the transparent and fair nature of the divestiture processes for HDL and SLT.
