"We are considering initiating this option as the Central Bank Governor has recommended that the IPO should focus on the people of Jaffna," MBSL Chairman Janaka Ratnayake told the Island Financial Review.
The IPO is still in the planning stages, he added.
The 80-room hotel will be launched for business by February next year, he said.
MBSL, currently managing eight failed financial institutions with a liability of Rs. 50 billion, has now changed its scope towards development of the national economy by contributing to the tourism sector, Ratnayake said.
The new hotel is to be built on a land which is owned by The Finance Company, the largest financial institute managed by MBSL.
The land was on auction and after the inspection it was recognized as an ideal location for a hotel and for seeing the profits MBSL has embarked on this project, he said.
Ratnayake also said the project would set an example to other potential investors, who would drive their investments to the North.
The hotel would also create both direct and indirect jobs for the citizens in Jaffna.
Central Bank Governor Ajith Nivard Cabraal, gracing the occasion, said that the project would open avenues of business opportunities in the North, while increasing job capacity.
He stressed that the public and private sector should support the government’s efforts to double the per-capita income within the next five years.
Tourism is a rapidly growing industry and it is time to grasp all potential opportunities, he said.
Jaffna is a key area attracting investments at present and the Sri Lanka Tourism Development Authority hopes to expand capacity.
Sri Lanka currently has 15,000 hotel rooms to support the arriving numbers and it is hoped the figure would reach 50,000 by the next five years.
Jaffna only has 150 rooms and these are highly priced and are in unsatisfying conditions.
The MBSL’s new project Hotel Nullur would be a good start in developing the room capacity in the region, Cabraal added.
source - www.dailynews.lk
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