Once non-operational hotel in South revived and put back in business by Lankalia

By Hiran H. Senewiratne

Lankalia (Pvt) Ltd, a newly formed, BOI approved company, is now in the process of purchasing non- operational local hotels, whose dysfunctional condition is mainly traceable to nonpayment of bank loans by their original owners or those which had to shut down due to the pandemic situation in the country. One such hotel has been revived by the company in Yodakandiya, Tissamaharama.

Under this initiative Lankalia (Pvt) Ltd invested more than Rs. 180 million in newly- built 22 rooms (14 premium and 8 deluxe rooms) in Oga Reach Yodakandiya, Tissamaharama. It bought a 85 per cent stake in this property. “The owner had hard times because of an inability to pay the bank loan and we came to his rescue and took over it and it’s now operating well, chairman, Lankalia, Dashitha Bogollagama told The Island Financial Review.

Bogollagama added: ‘Out of the total investment, we had to pay in cash around Rs. 100 million to banks, the total defaulted amount, to clear the balance sheet.

Dashitha
Bogollagama

‘We are now managing/maintaining the hotel and will further invest to upgrade rooms and many other infrastructure items of the hotel.

‘We have also come to an agreement in sharing profit with the previous owner, who still holds 15 per cent ownership.

‘We have already invested over US $ 6 million for ten hotel properties that were shut down due to the pandemic and other financial issues. We will promote all of them all over the world through our digital platform.

‘At present, the Chinese market is lucrative and we are in the process of penetrating the Chinese market to promote their hotel properties to bring foreign reserves into the country. At present they have 150 digital marketers to do that task.’

Meanwhile, Oga Reach General Manager S. Srimohan said that more than 25 families depend on this hotel for their livelihoods. ’All staff members are picked from the village to run the property, which is located close to a number of tourist destinations, such as, Kirinda, Bundala National Park, Hambantota Bird Park and many other places.’

Srimohan also said that they have tied up with foreign tour /travel agents to promote the hotel. ‘Apart from that we are promoting the hotel through digital marketing platforms as well, he added.