Compensation for Hilton & Pelwatte shareholders

Three-member panel to receive claims

The government has appointed a 3-member panel with the Government Chief Valuer as its Chairman and two chartered valuation surveyors, one of them a former Government Chief Valuer, as a compensation tribunal to receive claims in respect of shares of enterprises vested with the Secretary to the Treasury under terms of the Revival of Underperforming Enterprises or Underutilized Assets Act of 2011.

Two companies quoted on the Colombo Stock Exchange, Hotel Developers PLC, owners of the Colombo Hilton, and Pelwatte Sugar PLC were among enterprises taken over under provisions of this controversial act.

The three-member panel comprises the Government Valuer, Mr. P.W. Senaratne (Former Chief Valuer) and Mr. Sunil Fernando as members.

The office of the tribunal is located at the Tax Appeals Commission Building, 49/14, Galle Road, Colombo 3.

In a public notice on the appointment of the panel, its chairman has said that shareholders or owners of affected enterprises are entitled "to receive prompt, adequate and effective compensation in terms of the Act".

Such compensation shall be payable to reflect the value of the shares held by each shareholder in affected enterprises or to reflect the value of an under-utilized asset based on its ownership by one or more of the owners .

A spokesman for Hotel Developers said that there is now only one shareholder of the Hilton’s owning company, and that is the Secretary to the Treasury. Other shareholders may lodge their claims with the panel.

Shareholders of Pelwatte were recently summoned for an EGM for consultations on the possibility of mounting a challenge to the takeover.

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