Wednesday 19 March 2014

Sri Lanka Telecom to develop property holdings

Mar 19, 2014 (LBO) - Sri Lanka Telecom group said it had set up a separate company to develop its "extensive property portfolio" around the country which was unused or or under-used.

In 2013, SLT Property Management (Pvt) Ltd (SLTPM) had been incorporated to develop its property holdings.

"Given the growing demand for property in Sri Lanka, it was strongly felt that such idle lands could ideally be channelled towards more lucrative avenues that would not only enhance the value of the property, but also have a positive impact on the SLT Group bottom line," the company told shareholders in the annual report.

Sri Lanka Telecom inherited land around the country when the former state-run Department of Telecommunications was corporatized after being priced by the government valuer in 1991. SLT became a public company in 1996.

"The Directors believe that the Company has freehold title to the land and buildings transferred on incorporation (conversion of SLT into a public limited company on 25 September 1996), although the vesting orders specifying all the demarcations and extents of such land and buildings could not be traced," the firm said.

"The Company has initiated action to transfer legal title documentations."

The property is carried in its books at a cost of only 356 million rupees in its 2013 financial statements.

The company said there was a large number of unused or under-used properties in the group.

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