Costly Ruling

Susantha Ratnayake, Chairman, BOI formally presents the Certificate of Registration to Indra Silva, Chairman, Indra Hotels and Resorts Kandy (Pvt) Ltd

May 14, 2008 (LBO) – Sri Lanka’s five-star city hotel Galadari Hotels said Wednesday it had been ordered to pay 101 million rupees in an arbitration hearing but that it would appeal against the ruling. The hotel said in a Colombo stock exchange filing that an arbitrator at the Sri Lanka National Arbitration Centre had delivered the award in favour of the claimant, Phil- East Asia Construction Corporation.

“In terms of the award, Galadari Hotels (Lanka) PLC is ordered by the single Arbitrator hearing the matter to pay a sum of 101,465,814 rupees to the Phil- East Asia Construction Corporation,” it said.

But the hotel company’s board at a meeting on May 13 decided to appeal against the award at the High Court. .