Sri Lanka Galadari stake bought by Dubai govt

Oct 31, 2011 (LBO) – An investment fund connected to the Dubai government has bought a 16.1 percent stake in Sri Lanka’s Galadari Hotel, in a deal valued at 1.18 billion rupees. The broking firm TKS Securities said 29.5 million shares were bought at 40 rupees each.

Sri Lanka’s tourist arrivals have been up since the end of a war in 2009. Though revenues have improved the firm is burdened by debt and accumulated losses.

A debt to equity swap has been proposed to strengthen the balance sheet.

Dubai-based Galadari family were the main promoters and key shareholders of the hotel. According to earlier reports Dubai government took a 30 percent stake in the Galadari group, which also owns the Khaleej Times newspaper.