Sri Lanka ‘Laksala’ hit by Rs200mn zero return theme park
ECONOMYNEXT – Sri Lanka Handicraft Board, which operates under the brand ‘Laksala’, has been hit by a project that costs 221 million rupees, but is bringing zero returns after it was taken off the firm, a government report shows.
Laksala had borrowed 199.4 million rupees and spent 21.6 million rupees of its own money to build ‘Ape Gama’ in Battaramulla, a theme park styled on a traditional village where crafts people work.
It was opened in 2013. But from December 2015, ‘Ape Gama’ had been gazetted under the Ministry of Education.
A report by the Public Enterprise Department says Laksala now does not return any investment from the theme park.
But, it has to spend 3.9 million rupees a month to service the loan with interest. In 2016, the firm has posted a profit of 4.48 million rupees, returning from a loss of 21.9 million rupees by cutting the cost of sales and some administrative expenses.
However, revenues had fallen to 788 million rupees from 787 million rupees. (Colombo/Sept17/2017)