Hi Mike,
I like the idea of renting/borrowing a magnetic drill press (Mag Drill) mounted to a steel plate that is clamped to the stainless steel. You can use the existing hole size drill bit to center the drill, then switch out to the 16mm bit to enlarge the hole. I have several mag drills that I use for applications like yours. The mag drill in the first 2 photos has power feed, while the smaller one in the last photos has a drill chuck with manual down feed.
David
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