13 December 2017 10:00 am
The World Bank’s private equity arm, the International Finance Corporation (IFC), will be investing US $ 27 million in Melwa Hotels and Resorts Private Limited (MHRPL), which is developing Hilton properties in Sri Lanka.
“IFC will invest up to US $ 27 million in long-term debt. The proceeds of the IFC loan will be used to fund the construction of the hotels,” IFC said.
IFC said that MHRPL has undertaken to develop three resort hotels in Sri Lanka. The project value, according to IFC is US $ 78 million, for a 96-room hotel in Negombo, a 42-room hotel in Yala and a 196-room hotel in Kosgoda, which would be managed by Hilton.
However, this April, when MHRPL announced its partnership with Hilton, the number of properties to be developed was told to be six, totalling nearly 800 rooms with an investment of US $ 100 million. The last of the properties was to be completed by 2025.
Therefore, it is not clear whether IFC is partnering in only three of the six properties or whether the remaining three properties are shelved.
IFC said that the status of its investment is pending approval; the decision will be taken by the IFC board in January. MHRPL is owned by Sri Lanka’s largest steel rod manufacturer Melwire Rolling Private Limited (MRPL), which in turn is owned by the Periyasamy Pillai family.