The Sovereign Corporate Hotel building in Rajagiriya owned by the Central Bank of Sri Lanka will be handed back to the bank says Director General of BMICH Sunil Dissanayake, resulting in the closure of the hotel. According to the Director General, the hotel will cease operations from July 15. Clarifying the situation Dissanayake said the hotel was managed by the BMICH on a 10 year contract between the BMICH and the Central Bank. “We have, however, on agreement with the bank decided to terminate the agreement prematurely,” he said adding that employees have also been given two months notice prior to termination as per their ten year contract with them.

According to the Director General, the employees will receive three months salary as a lump sum once operations cease on July 15. “While the contract calls for two months salary we have decided to pay one month’s additional salary as compensation,” he said. Dissanayake also said he was unsure of the hotel’s future as any further decision should be taken by the Central Bank.

On Thursday (June 25) all employees of the hotel staged a protest against its closure while calling for operations to continue. According to the employees, the government has not kept promises made to them in regard of their employment.