Once envisioned as a symbol of luxury and ambition, the Grand Hyatt Colombo remains an incomplete monument to Sri Lanka’s turbulent economic and political history, even 21 years after construction began.
Originally launched in 2003 as Ceylinco Celestial Residencies by the late billionaire Lalith Kotelawala, the project was intended to be a 48-storey mixed-use tower housing a five-star Hyatt Regency Hotel with 458 guest rooms and 100 serviced apartments. However, delays, controversies, and mismanagement have plagued its progress from the start.
After the collapse of the Ceylinco Group during the 2008 Golden Key financial scandal, the half-built tower was taken over by the government in 2012 under the Revival of Underperforming Enterprises Act. It was rebranded as the Grand Hyatt Colombo and handed over to Canwill Holdings (Pvt) Ltd., a special purpose vehicle funded by public entities including Sri Lanka Insurance Corporation, Litro Gas, and the Employees’ Provident Fund.
Despite investing over Rs. 18 billion in public funds, the project has not progressed beyond its structural shell. A forensic audit has highlighted serious issues such as irregular tenders, procurement malpractice, and overspending. By 2019, costs had soared to Rs. 21.6 billion, with another Rs. 36 billion (approximately USD 120 million) required for completion.
Cabinet Spokesperson Minister Nalinda Jayatissa recently confirmed that the government will proceed with selling its shares in Canwill Holdings, which owns the Grand Hyatt Colombo, in a bid to attract private capital. Deloitte Touche Tohmatsu India has been retained as the transaction advisor.
Legal disputes have further entangled the project. A controversy over the ownership and purpose of the ultra-luxury “mill owners’ apartments” on the upper floors — complete with lounges, jacuzzis, music rooms, and private elevators — added fuel to the fire. With no clear ownership and mounting costs, even these features were eventually absorbed into the general hotel layout.
Construction, originally led by architects from Design Consortium Ltd. and contractors including Maga Engineering and Nawaloka Construction, was scheduled to be completed by the end of 2008. But with repeated government changes and shifting political agendas, the project was continually derailed. In 2015, agreements with construction companies were cancelled, delaying progress yet again.
In 2022, the government included the Grand Hyatt in its broader state enterprise restructuring programme. By October 2023, interest in the redevelopment was shown by five Indian firms and one local investor. However, as of January 2025, the project remains incomplete, saddled with a USD 35 million loan and no clear roadmap to completion.
Standing tall yet hollow in the heart of Colombo’s Galle Road, directly opposite Temple Trees, the Grand Hyatt Colombo has become a potent symbol of Sri Lanka’s flawed mega project culture — a costly reminder of missed opportunities, poor governance, and systemic inefficiencies.
Whether it will ever fulfil its original promise remains a question for future administrations — and future generations.
