Colombo (LNW): The government has taken a significant step towards state-owned enterprise reform with the appointment of transaction advisors for the divestiture of 7 identified entities. The decision is in line with the policy directive set by the government and aims to ensure effective and transparent divestiture of key entities.
Under the leadership of the president, a proposal was presented to the cabinet of ministers and subsequently approved. To ensure a successful process of divestiture the government decided to seek expert advice from the transaction advisors.
The Cabinet of Ministers has approved the appointment of The International Finance Corporation (IFC) a member of the World Bank Group for the divestiture of Sri Lankan Airlines Limited, Lanka Hospitals Corporation PLC and Sri Lanka Telecom PLC.
The appointment of advisors for the remaining 4 entities, namely Sri Lanka Insurance Corporation Ltd (SLIC), Hotel Developers Lanka Ltd (Hilton), Canwill Holdings (Pvt) Ltd (Hyatt) and Litro Gas (Pvt) Ltd (Litro, including Litro Gas Terminals (Pvt) Ltd) was carried out through a competitive bidding process following Government’s Consultant Procurement Guidelines. Both local and international advisors submitted proposals, which were evaluated by a Special Cabinet Appointed Consultants Procurement Committee, appointed by the Cabinet. Following the procurement process, the committee recommended the appointment of transaction advisors as follows:
- Litro Gas (Pvt) Ltd (Litro, including Litro Gas Terminals (Pvt) Ltd): Deloitte India has been appointed as the transaction advisor.
- Canwill Holdings(Pvt) Ltd (Hyatt): Deloitte India has been appointed as the transaction advisor.
- Hotel Developers Lanka Ltd (Hilton): Colliers Singapore and Platinum Advisors has been appointed as the transaction advisor.
- Sri Lanka Insurance Corporation Ltd (SLIC): Alvarez & Marsal and Capital Alliance Partners has been appointed as the transaction advisor.
These recommendations were approved by the Cabinet of Ministers at its meeting held on Monday 10th July. The agreements with respect to these appointments will be concluded shortly setting the stage for the next phase of the divestiture process including investor engagement.
The government believes that the appointment of these expert transaction advisors ensures efficient and transparent divestiture process. By leveraging their expertise, the government is working towards the successful transition of these entities which promotes economic growth and sustainability.
