CSE to close at noon on Apr. 20

The Colombo Stock Exchange announced on Thursday that it will close at 12 noon on Friday April 20 in view of a special half-holiday declared by the CSE for Sat. Apr. 14 on account of the Sinhala/Tamil New Year falling on Sat. Apr. 14.

Citrus abandons Kalpitiya project

Hikkaduwa Beach Resorts PLC (CITH) last week announced that it will, subject to shareholder approval, utilize Rs. 13.9 million of its IPO funds to reduce CITH’s debts.

The company has obtained an assessment of the marketability of the resort it was planning at Kalpitiya from a reputed firm of professionals who have reported that Kalpitiya will not be an attractive location to build a star class resort in the foreseeable future due to several factors including the unavailability of the required infrastructure.

Therefore they would not set up the proposed Ayurvedic Resort and Spa there subject to shareholder approval.

IPO funds of Rs. 283.5 million intended for this project will be used to reduce CITH debts after deducting approx. Rs. 5 million spent on developing a model chalet there and approx. Rs. 0.9 million on the independent marketability report. This would amount to Rs. 277.6 million.

The company will also dispose of land previously owned by Citrus Kalpitiya now amalgamated with CITH and use the proceeds for either restructuring existing debts or the development of other properties owned by the company.

An EGM of CITH will be convened on a date not yet specified to get shareholder approval for these arrangements.

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