Wednesday, 23 October 2013 00:01
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Promoters of two mega multi billion rupee integrated resorts, Crown of Australia and Sri Lanka’s John Keells Holdings, yesterday appeared calm over the postponement of the debate in Parliament on their projects.
The Parliament was to debate the approvals and concessions under the Strategic Development Act (SDA) on Friday, but the Government Parliamentary Group Leaders meeting chaired by President Rajapaksa decided to defer the move.
In a brief statement, a spokesman for Crown said: “Crown Resorts understands and respects the decision by the Sri Lankan Government in relation to the gazettal debate. Crown will continue to work constructively with the relevant Government authorities to complete the necessary approvals related to the establishment of an integrated resort in Sri Lanka. We look forward to the Parliamentary debate in the near future.”
JKH in a filing to the Colombo Stock Exchange said: “Following the news reports on the postponement of the gazette under the Strategic Development Projects Act on the Waterfront Project, the company would like to clarify that the status and scope of the project, as previously communicated to shareholders, has not changed.”
JKH share price dipped by Rs. 1.10 or 0.5% following the announcement. On Monday it was down by 1.5%. Rights fell by 26% to Rs. 45.80 on Monday but recovered yesterday to close up Rs. 3.30 or 7%.
JKH is currently engaged in an exercise to raise Rs. 40 billion via a Rights cum Warrants issue to part finance its integrated resort estimated to incur an investment of $ 650 million.
