Sri Lanka Hilton reveals Rs10.3bn accumulated losses

Aug 22, 2011 (LBO) – Sri Lanka’s Colombo Hilton hotel has filed its first accounts in about 20 years, revealing a loss of 1.2 billion rupees in 2010 and accumulated losses of 10.3 billion rupees and auditors expressing a qualified opinion. Hotel Developers (Lanka) which owns Hilton Colombo Hotel said the loss in the financial year to March 31, 2010 was up 3.9 percent from the previous year with sales up 30 percent to 1.8 billion rupees.

Finance costs had risen to 1.4 billion in 2010 from 1.2 billion rupees the previous year while shareholder funds were a negative 4.8 billion rupees, down from 8.3 billion the year before after a property revaluation.

The hotel, in which the government holds a 65 percent controlling interest and whose management agreement with Hilton International USA expired in December 2007, reported a loss per share of 26.87 rupees in 2010 compared with 25.87 the year before.

Hotel Developers (Lanka) shares were trading at 140 rupees in mid-day trade Monday, down 3.70 rupees.

The Hilton Colombo accounts filed with the Colombo stock exchange said that although the management deal had expired, management fees have been accounted as per the terms of the agreement.

Auditors SJMS Associates have give