Kalpitiya Beach Resorts (KBR) PLC last week said the proposed Kalpitiya Tourism Zone was still on the cards and that the government had shown positive intent to revive the project.
In a statement released last week, KBR PLC stated that the proposed venture in Kalpitiya was held back due to the government’s proposed Kalpitiya Integrated Tourism Resort project replete with tourism infrastructure and attractions not being implemented to date.
The Securities and Exchange Commission (SEC) had alleged that the institution had cheated the public after having raised funds through an IPO for the said project.
It was also alleged that the shareholders were kept in the dark with regard to the progress of the project.
“The Company has regularly made transparent disclosures regarding the postponement of the project via its Annual Reports, Annual General Meetings and disclosures to the CSE as early as 20 December 2013,” the statement said. “The shareholders have been regularly updated and been fully aware of the current status,” it added.
It also stated that the Company has not commenced the project as planned because the desired occupancy levels cannot be achieved if KBR PLC were the only disproportionately large operator in the area, leading to potential significant financial losses.
“Moreover, at all times, the company has acted with the interest of commencing the project in a feasible manner; in fact, along with the architectural plans, all statutory approvals and permits relating to tourism, construction, environment and utilities, etc. have been obtained.”
The Board of Directors added that with the new government showing positive intent to revive the Kalpitiya tourism zone, it is hopeful of working closely with the authorities and developing KBR PLC to become as successful as initially envisaged, in a timely manner.