Commercial High Court orders winding up of Asia Leisure

Thursday, 16 January 2025 02:48 - - {{hitsCtrl.values.hits}}

The Commercial High Court in Colombo, presided over by Pradeep Hettiarachchi, in a landmark judgment recently ordered the winding up of Asia Leisure Ltd., following a petition filed by the Gunawardena family who are owners of the property housing the Tamarind Hotel in Galle.

The Gunawardena family filed the winding-up petition following years of unpaid rent and Asia Leisure operating the hotel without a valid lease agreement. Tamarind Hill, a 250-year-old manor transformed into a colonial-style luxury boutique hotel, is one of Galle’s grandest and most famous boutique hotels. Despite its reputation, Asia Leisure’s failure to fulfil its rental obligations has led to this legal measure.

The Gunawardena family’s claims and the subsequent Court order highlights a troubling lack of accountability within Asia Leisure’s management team. Furthermore, the financial decline of Asia Leisure’s parent Asia Capital PLC with negative net assets and earnings raises broader concerns about corporate governance under its current leadership.

President’s Counsel Avindra Rodrigo, along with junior counsel Kosala Garusinghe and Kalpani Ratnayake, instructed by Sanjay Fonseka, represented the Petitioners. President’s Counsel Dinal Phillips, instructed by Sarravanan Neelakandan Law Associates, appeared on behalf of Asia Leisure Ltd.