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Lankalia to revive defunct leisure entities with USD 5 Mn infusion

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Key members of Lankalia
Key members of Lankalia

In a bid to bail out and re-launch defunct and non-profitable leisure sector assets, a new BOI approved company Lankalia Pvt. Ltd was launched in 2022 June, by a consortium of Singaporean and local investors.

“We have already invested over UDS 5 million and restarted some of the hotels that were shut down due to the pandemic and other financial issues,” said partner Lankalia Pvt has Andrew Lee who is also director of AMBROASIA LTD of Singapore and majority stakeholder of Blue Diamonds Ltd.

He said that they are optimistic that the Sri Lankan tourism sector would rebound earlier than expected and arrival growth partners are shifting towards this direction. “SriLankan Airlines has also resumed flights to China while other airlines have increased frequency and an influx of Chinese tourists too are expected. We studied that to meet this projected demand the local hotel rooms are not going to be adequate and several have been shut down and our aim is to review them and get them operational.”

He said that some of the hotels are unable to service their debt and we came forward to bail them out providing capital and get back to business again. Chairman Lankalia Pvt. Ltd, Dhakshitha Bogolagama said that their focus is on small luxury boutique hotels and they have already provided capital four hotels three in South and one in Anuradhapura and these hotels which were virtually shut down will start operating in a few days time. He explained that these hotels are mostly single owner hotels but were in huge debt and we stepped in and bailed them out providing them credit. “This would be at a far lower rate than the present market interest rate.”

The Singapore consortium partner provides them seed capital for this process. Zeta Global of Singapore and Sri Lanka, Director, Stephany Poon (which is a BOI approved company) while also providing loans to hoteliers also carry out management as these hotels lack marketing capabilities.

 

Tuesday, February 14, 2023 – 01:00











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