Sri Lanka Kalpitiya Beach Resort says new plan on track

Sep 02, 2015 (LBO) – Sri Lanka’s troubled Kalpitiya Beach Resort, a subsidiary of Citrus Leisure PLC which blamed the former government for not developing Kalpitiya to build their hotel from the money they raised through an Initial public offering says the new plan for the construction of a Ayurveda spa resort is on track. “Plans are well on the way to complete this project by 2017,” Prema Cooray, Chairman of Kalpitiya beach resort told shareholders in its Annual Report.







“Furthermore, it is encouraging to see several positive announcements made by the current administration with regard to the development of the proposed tourism zone in Kalpitiya,” “The long delay in the implementation of government plans had delayed the original plans for Citrus Kalpitiya. Ayuveda tourism is niche product which is not as dependent on the destination development, nevertheless a fresh focus on Kalpitiya by the new government augurs well for Citrus.” In 2011, Kalpitiya Beach Resort raised 283.5 million rupees from an initial public offering stating that the funds will be utilized partly to finance a construction of a resort hotel in Kalpitiya and vowed to start commercial operations early this year.





However Sri Lanka security watch dog, Security Exchange Commission at a meeting held on 10th March has expressed ˜grave concerns” for not constructing a hotel within the stipulated time. Replying to this Kalpitya resort said, the company would await the new Government’s vision and intent to implement the development plans for Kalpitiya with clear time lines, so that the Company may review the appropriate time to commence the project.

On March 20th, SEC ordered Kalpitiya Beach Resort to call an EGM for not complying with the construction work stated in its prospectus and the EGM which was supposed to held 08 May was postponed by another month, on a directive by SEC to come up with a proper plan. In June 2015 Citrus Kalpitiya received shareholder approval to develop a 60 room Ayurveda spa resort in the same land after the Security Exchange Commission raised concerns on the transparency of funds and asked the company to come up with proper future plans.



Citrus Kalpitiya owns a freehold land of 6,932 perch in Kalpitiya.

Officials who handle the Kalpitiya tourism zone development were not available for comments when Lanka Business Online contacted.

See Also :

• Sri Lanka’s troubled Kalpitiya Beach Resort points finger at former regime
• Kalpitiya Beach Resort To Build Ayurvedic Spa; Seeks Shareholder Approval
• Sri Lanka’s SEC sympathetic towards controversial Citrus Kalpitiya Beach Resort; EGM postponed
• Sri Lanka’s SEC directs Kalpitiya Beach Resort to call an EGM