January 5, 2018 / 11:29 AM / 6 months ago

Sri Lanka's Jetwing starts trading; expects up to 250 mln rupees loss this year

COLOMBO, Jan 5 (Reuters) - Jetwing Symphony, a Sri Lankan hotel chain firm, started trading on the Colombo Stock Exchange on Friday after listing a 10 percent stake, and said it was likely to incur an up to 250 million rupees ($1.6 million) loss this year.

The company, the 297th to be listed on the local bourse, raised 753 million rupees through the listing to settle part of its debt.

Chairman Hiran Cooray said 2018 would be a year of consolidation and reducing debt for the company.

“We can’t see financial return coming in. There is a possibility of financial returns starting to coming from 2019. This year, there will be a loss of 200 million to 250 million rupees due to interest payment and depreciation,” he told Reuters at the bourse soon after the shares started trading.

The company, which runs five hotels in tourist hot spots in the island nation, had borrowed around 3 billion rupees to develop three properties.

Cooray said the company aimed to start the construction of another hotel in the hill country city of Kandy - a high end resort - this year and then to develop another property in the eastern port city of Trincomalee.

On the first day of trading the shares in Jetwing Symphony ended 0.7 percent firmer, compared with the opening price of 15 rupees a share.

$1 = 153.4500 Sri Lankan rupees Reporting by Shihar Aneez; Editing by Mark Potter

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