Hayleys-controlled, Amaya Leisure embarks on expansion

A series of acquisitions and planned developments over the next financial year is projected to lead to more than doubling the capacity of Amaya Leisure PLC, as the Hayleys conglomerate's hospitality sector company gears to respond to the growth expectations of Sri Lanka's tourism industry.

" Fortified by robust performance indicators in the first nine months of 2011-12, during which it achieved a net profit of Rs 182 million entirely from operations, the company has embarked on a strategic expansion that will add another 400 rooms to the 35 currently under management," Amaya PLC Managing Director Lalin Samarawickrama said in a media statement.

The recent acquisition of ' Lake Lodge' in Kandalama and land adjacent to Amaya Hills in Kandy, coastal developments planned in Nilaveli in Trincomalee and at Wadduwa, and prospective developments in the wildlife reserves of Yala and Wilpattu could see Amaya Leisure emerge as the third largest player in Sri Lanka's hospitality sector, he said.

" Occupancy levels are up, and room rates are increasing," Mr. Samarawickrama said. "Amaya Leisure is structured to make profits. Our gearing ratio is around 3 %, and returns on revenue are between 30 to 40 %."

He disclosed that more rooms are to be added to existing properties Amaya Lake and Amaya Hills, even as properties that recently came under Amaya management -- Hunas Falls, Kandy; Coral Rock, Hikkaduwa and Langdale, Nuwara Eliya -- undergo a revamp in terms of product and marketing. Web-based booking platforms are to be focussed on, and markets that can generate visitors in off season, such as the Middle East will be developed, he explained.

For the nine months ending 31st December 2011, Amaya Leisure PLC posted revenue of Rs 568 million and pre-tax profit of Rs 195 million. While revenue reflected a growth of 20 % over the corresponding nine months of the previous year, profit after tax was lower principally because the previous year's profits were swelled by capital gains of Rs 281 million.

Previously known as Connaissance Holdings Ltd., Amaya Leisure PLC owns and manages a chain of hotels that carry the flagship brand name 'Amaya' .

Lankem Chemicals Ltd, part of Lankem Ceylon PLC, recently inaugurated its brand new chemical and thinner plant at Sapugaskanda.

This facility consists of an underground petro chemical storage facility, along with an inter- connected blending and drumming plant, at a project cost of more than Rs. 120 million.

In a statement the company said that with this investment Lankem becomes the first chemical manufacturing company in Sri Lanka to have a facility of this nature.

Director Lankem Ceylon Ruwan T. Weerasinghe said the first phase of the new factory consists of a warehouse which exceeds more than 4000 sq ft of secure storage, a modern blending plant as well as a drum yard with a storage capacity of more than 5000 drums at any given time.

“With minimum human involvement from storage to blending and packing, this plant is one of the safest in the country,” he said.

Lankem Chemical Ltd is the largest importer of solvents representing world industry giants like Dupont and Akzo Nobel, as well as the largest manufacturer of thinner in Sri Lanka.