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.
Even though the company has vowed to start commercial operations of the completed hotel early this year, the SEC at a meeting held on 10th March has expressed ‘grave concerns’ for not constructing a hotel within the stipulated time.
“The market disclosure made by your company and the reasons given for the delay no longer justifies prolonging the construction any further.” the SEC said in a directive issued earlier.
The 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.
However the company also says, that it will not depend on Kalpitiya as a location to develop the project.“…continue to explore possible investor interest that negate the externalities, by Investors/Partners who could provide the Company a guaranteed occupancy, so that the Company would not be dependent on Kalpitiya destination development as promised in the past by the government of Sri Lanka,” the company said in a Colombo Stock Exchange filing.
“…Explore the feasibility of an alternative location, within Sri Lanka and Maldives as an alternate destination to Kalpitiya for a tourism project. “
“….consider partners who would create unique marketable products that will further ensure occupancy as a standalone hotel such as golf course and theme parks.
The directors have also decided to respond to the SEC with regard to the release to the Media and clarify in writing the issue to the Prime Minister with regard to his statement made in parliament pertaining to the company.
CSE data showed, Citrus Leisure Plc owns 72.17 percent of stake, Kalet Malinie Goonewardene owns 4.83 percent of shares,Capital Trust Holdings has 2.76 percent stake while former Navy Commander Rear Admiral, Wasantha kumara Jayadewa Karannagoda holds 0.69 percent shares.
Board members includes Emilianus Prema Alphonse Cooray (Chairman),Dilith Susantha Jayaweera, Varuni Sonali Fernando Amunugama, Rajinda Seneviratne,,Janesh Manoj Bandara Pilimatalawwe and Suresh Dayanath De Mel.