Business

TAL Lanka Hotels in major moves to capitalize loans to tune of Rs. 1.3 billion

Published

2 years ago

2025/01/28

By Hiran H.Senewiratne

TAL Lanka Hotels has announced a move by major shareholders to capitalize loans worth Rs. 1.3 billion by way of a private placement of shares.

The company has obtained loans from its major shareholders – TAL Hotels and Resorts Ltd., and IHOCO BV worth $ 4.47 million or Rs. 1.32 billion. Total outstanding capital due is US $ 3.65 million to TAL $ 820,000 to IHOCO.

TAL holds a 58.14% stake in the company and IHOCO 24.6 percent. To strengthen the financial position, the company has capitalized the loans due and payable to the major shareholders by converting such loans amounting to an aggregate of $ 4,469,962 (equivalent to Rs. 1,321,369,490) into equity by issuing ordinary voting shares in the company to major shareholders. The price at which new shares will be issued is Rs. 41 per share.

As at 31 December 2024, TAL had Rs. 3.5 billion in long-term interest bearing borrowings. Short term borrowings amounted to Rs. 568 million, down from Rs. 1.1 billion a year ago. The current stated capital of the company is Rs. 1.39 billion.

The public holding of the company is 17.24 percent held by 9,853 shareholders. The issue of shares by way of a Private Placement is subject to the fulfilment of certain conditions, including the CSE approving in principle the issue and listing of the Private Placement Shares and obtaining the consent of the shareholders of the company at a General Meeting.

Amid these developments yesterday the stock market kicked off on a negative note. Later it bounced back with the gaining of Lanka IOC stocks, which witnessed a 16 percent or Rs 19.50 price appreciation at the end of the trading. It is a significant price movement of Rs 19.50. Its shares traded at the outset at Rs 123 and it moved to Rs 142.50.

Amid those developments both indices moved upwards. The All Share Price Index went up by 126.8 points while S and P SL20 rose by 30.5 points. Turnover stood at Rs 5.94 billion with six crossings.

Those crossings were reported in JKH, which crossed 18.5 million shares to the tune of Rs 426 million and its shares traded at Rs 23.10, Seylan Bank (Non- Voting) 2.5 million shares crossed to the tune of Rs 148.8 million; its shares sold at Rs 59.50, Melstacope 688,000 shares crossed for Rs 89.2 million; its shares sold at Rs 131, LB Finance 750,000 shares crossed for Rs 65.5 million; its shares traded at Rs 91, Lanka IOC 500,000 shares crossed for Rs 65.5 million; its shares traded at Rs 131 and Vallibel One 850,000 shares crossed for Rs 57.2 million; its shares traded at Rs 67.50.

In the retail market top six companies that mainly contributed to the turnover were; Lanka IOC Rs 758 million (5.7 million shares traded), JKH Rs 452 million (19.6 million shares traded), HNB Rs 259 million (742,000 shares traded), Alumax 204 million (13.1 million shares traded), Browns Investments Rs 202 million (23.4 million shares traded) and Softlogic Life Rs 147 million (1.9 million shares traded). During the day 197 million share volumes changed hands in 34600 transactions.

It is said that the manufacturing sector led the market, especially with the JKH crossing and retail trading activities while the banking sector was the one of the largest contributorsto the turnover. Lanka IOC also played a pivotal role in the market.

Yesterday, the rupee was quoted at Rs 298.40/60 to the US dollar in the spot market, weaker from Rs 298.15/40 to the US dollar Friday, while bond yields were broadly stable, dealers said.

Stocks were down 0.32 percent. A bond maturing on 15.12.2026 was quoted at 9.15/23 percent, down from 9.15/25 percent. A bond maturing on 15.10.2027 was quoted at 9.75/85 percent, up from 9.70/85 percent. A bond maturing on 15.02.2028 was quoted at 10.10/18 percent, down from 10.10/20 percent. A bond maturing on 01.05.2028 was quoted at 10.27/32 percent, up from 10.25/33 percent. A bond maturing on 15.09.2029 was quoted at 10.75/85 percent, up from 10.70/85 percent. A bond maturing on 15.10.2030 was quoted at 11.30/34 percent, down from 11.30/40 percent.

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Business

Rs 160 million + diesel discrepancy at Lakvijaya power plant prompts probe

Published

13 hours ago

2026/09/30

Sahan Weerasooriya

The Lakvijaya power plant in Norochcholai.

By Ifham Nizam

A Rs.160 million-plus diesel discrepancy at the Lakvijaya power plant in Norochcholai has triggered an internal investigation, raising questions over the handling of public funds and the controls governing fuel purchased for electricity generation.

The discrepancy surfaced during an internal audit of diesel supplied to the plant from the Kolonnawa and Sapugaskanda fuel terminals, according to senior officials familiar with the inquiry.

The audit has identified five transactions—two in December 2025 and three in January 2026—in which diesel recorded as delivered to the plant allegedly could not be fully accounted for in its physical stocks.

The investigation is now examining whether these were isolated discrepancies or part of a longer-running practice.

One transaction under scrutiny relates to January 16, when records reportedly showed that 10 diesel bowsers had arrived at the plant. Investigators subsequently found indications that the fuel stock corresponded to only nine bowsers.

A storekeeper responsible for the relevant fuel operation has reportedly been temporarily removed from those duties pending the investigation.

A senior official said investigators were reviewing historical records amid indications that similar discrepancies may have occurred over a longer period. If established, the financial exposure could therefore exceed the Rs.160 million currently identified.

The investigation is comparing fuel-terminal dispatch records, tanker movements, plant-entry records, receiving documents and physical stocks to establish exactly how much fuel was dispatched, received and accounted for.

That audit trail will also be critical in determining who authorised, received and certified the disputed consignments, and whether established controls were followed.

Relevant documents were reportedly transferred from Norochcholai to the company’s Colombo head office on September 26 for further examination, with electricity-sector security personnel assisting in the transfer.

The internal audit has also reportedly uncovered expired chemical stocks worth several hundred thousand rupees in the plant’s stores. Investigators are examining whether further inventory-management irregularities occurred.

The matter was also reportedly taken to the Puttalam Police Special Crimes Investigation Unit on September 26.

When contacted by Puttalam-based journalist Hiran Priyankara Jayasinghe for The Island Financial Review, Lakvijaya Power Plant Manager Nalaka Kumara confirmed that an investigation was under way but declined to provide further details.

The financial issue is direct: if the plant paid for diesel it did not receive, public-sector funds were spent without the electricity sector receiving the corresponding fuel.

Business

Sri Lanka Food Processors Association holds 29th Annual General Meeting

Published

13 hours ago

2026/09/30

Sahan Weerasooriya

The Sri Lanka Food Processors Association (SLFPA) successfully convened its 29th Annual General Meeting (AGM) on September 23, 2026, at the Water’s Edge Hotel, Battaramulla. Bringing together key industry stakeholders and member organizations, the event served as a platform to review milestone achievements from the 2025/2026 term and outline strategic priorities for the nation’s food and beverage processing sector.

At the AGM, the new Executive Committee for 2027/2028 was appointed, comprising: Honorary President Aruna Senanayake C.W. Mackie PLC Imme. Past President Thusith Wijesinghe Trans Continental Packaging & Commodities (Pvt) Ltd.

President Elect Nadishan Guruge Meadlee Trading Co. (Pvt) Ltd.

1st Vice President Damitha Perera Forbes & Walkers Commodity Brockers (Pvt) Ltd.

2nd Vice President Rasika Seneviratne Diesel & Motor Engineering PLC 3rd Vice President Deepal De Alwis Neochem International (Pvt) Ltd.

Honorary Secretary Amila Weerasinghe Nestle Lanka Limited.

Asst. SecretaryDineth Alahakoon Country Style Foods (Pvt) Ltd.

Honorary Treasurer Sameera Jayathilaka Westmann Engineering Company (Pvt) Ltd.

Asst. Treasurer Niroshan Dalpethado C D De Fonseka & Sons (Pvt) Limited. In addition to the above office bearers, the following ten Executive Committee Members were appointed:

Sanjeewa De Silva Unilever Sri Lanka Limited Sheran De Alwis MA’S Tropical Food Processing (Pvt) Limited

Thusitha Ekanayake Anods Cocoa (Pvt) Ltd.

Vijitha Govinna Plenty Foods (Pvt) Limited Ms. Praharshi Wickramasekara International Commodity Exports (Pvt) Ltd.

Sanjeewa Niroshan SGS Lanka (Pvt) Ltd. Kushan Amarasinghe Finagle Lanka (Pvt) Ltd.

Rangajeewa Hettiarrachchi Fonterra Brands Lanka (Pvt) Ltd.

Harindra Abeyrathna Vision Technologies International (Pvt) Ltd. Thilina Weerasekara Ceylon Cold Stores PLC

The event was proudly supported by key industry partners, with SGS Lanka (Pvt) Ltd serving as the Platinum Sponsor. Unilever Sri Lanka Ltd. and Nestlé Lanka Ltd. joined as Gold Sponsors, Ceylon Agro Industries – Prima as the Silver Sponsor, while Lanka Exhibition & Conference Services (LECS) and Hero Nature Products (Pvt) Ltd., supported as Bronze Sponsors.

The proceedings concluded with a vote of thanks delivered by Hony. Secretary Deepal De Alwis, followed by cocktails and a fellowship networking session, providing an opportunity for members to connect and strengthen industry ties.

Business

Uber brings the ‘business class of back seats’ to Sri Lanka with Uber Black

Published

13 hours ago

2026/09/30

Sahan Weerasooriya

New premium ride option expands Uber’s portfolio from affordable Moto and Tuk rides to premium on-demand travel

Uber announced the launch of Uber Black in Sri Lanka, bringing its premium ride experience to the country for the first time. Designed as the “business class of back seats,” Uber Black combines premium vehicles and highly-rated drivers for riders looking for greater comfort, quality and a more elevated travel experience.

The launch comes as demand for premium products and experiences grows across Sri Lanka, with consumers seeking greater choice and quality in their everyday experiences. Uber Black brings this choice to on-demand mobility, whether for an airport journey, an important business meeting, a special occasion or simply when riders want to travel in greater comfort.