COLOMBO (EconomyNext) – Sri Lanka’s Kalpitiya Beach Resort has called an extraordinary general meeting on 8 May to explain what happened to 283.5 million rupees raised from the public to build a hotel, saying it was considering an alternative location.
The EMG of shareholders was ordered by the Securities and Exchange Commission given the "inordinate delay" in Kalpitiya Beach Resort building a hotel in Kalpitiya.
The SEC said the company had raised 283.5 million rupees in an Initial Public Offer in November 2011 to part finance building Citrus Kalpitiya, a resort hotel.
Construction was to have been started by December 2011 and completed within 24-30 months with commercial operations of the hotel scheduled to start in early 2015
Kalpitiya Beach Resort, in a stock exchange filing, has blamed government delays in developing Kalpitiya as a tourist destination for its failure to build the hotel.
It said that independent of the proposed development by government the company has sought investment from international investors to obtain guaranteed occupancy before going ahead with the hotel.
"Investors from Spain, Chile, Russia and Singapore have shown interest in developing the property," Kalpitiya Beach Resort said.
A review, not an audit, by Ernst & Young of its financial statements, showed a loss of 103 million rupees up to 28 February 2015 compared with a loss of 132 million rupees in the financial year to March 31, 2014.