Sri Lanka JKH resort goes to Korean builders: report

Oct 08, 2013 (LBO) – Sri Lanka’s John Keells Holdings has awarded a consortium led by South Korea’s Korea’s Hyundai Engineering and Construction, a 522 million US dollar contract to build an integrated resort, a media report said. Hyundai E&C has a 65 percent stake in the construction consortium (339 million US dollars), Keangnam Enterprises, another Korean builder 25 percent (130 million) and the balance by Sri Lanka’s Nawaloka, Korea’s Yonhap news agency said.

The resort is built by Waterfront Properties, a unit of John Keells Holdings.

Waterfront properties is one of two high profile casino resorts that is expected to transform Sri Lanka’s tourism product.

JKH has made a cash call on shareholders to finance the projects, with foreign debt funding also expected to come in. JKH stock was quoted at 219 rupees up 20 percent in mid morning trade.