Ambiguity in the air over Kalpitiya Beach Resort PLC – Investigations ongoing says SEC (Watch Report)

Ambiguity in the air over Kalpitiya Beach Resort PLC – Investigations ongoing says SEC (Watch Report)

Written by Staff Writer

19 May, 2015 | 9:39 pm

The Securities and Exchange Commission says investigations are ongoing into a listed company – the  Kalpitiya Beach Resort PLC – which is yet to commence construction on a hotel project.

The SEC says it is paying close attention to the failure to build the hotel in the stipulated time-frame.

This is the plot of land that was reportedly allocated for the construction of the Kalpitiya Beach Resort Hotel. (Please see video).

Footage obtained on Tuesday, shows that while no construction has been undertaken, it is evident that no preparations have been made to commence construction either.

A sum of Rs.283 million was raised through an initial public offering at the Colombo Stock Exchange in December 2011, with the prospectus stating that the capital was being raised for this hotel project.

The SEC stated that the company in question had promised to build the hotel within 24 to 30 months. Who are the parties responsible for this transaction?

The Kalpitiya Beach Resort Hotel project was planned by Citrus Leisure PLC.

While Prema Cooray is the Chairman of Citrus Leisure PLC, Dilith Jayaweera, Varuni Fernando, Chandana Talwatte, Sarva Amarasekera, Rajinda Seneviratne, Manoj Pilimatalawwe, Suresh de Mel and Vasula Premawardane, function as directors.

As per information on the official website of Citrus Leisure, construction on the Citrus Kalpitiya Hotel was to commence in 2014.

Given that construction is yet to get underway, the SEC has inquired into what was done with the capital raised from the shareholders.

The issue price when the IPO   announced was 17 rupees and 50 cents a share.

The stock traded at an all time high of Rs.24 . The share is valued at Rs.3  and 60 cents, at present.

After the Police Financial Crimes Investigation Division recorded a statement from Dilith Jayaweera, a Director of the Company undertaking this hotel project, regarding a transaction at the Colombo Stock Exchange, several media institutions, reported on the matter over the past several days.

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