Business · Sri Lanka Bureau
Sampath Bank seizes Anilana hotel properties under loan recovery act
Sampath Bank has acquired Anilana Hotels and Properties' resort facilities in Trincomalee and Passikudah under Sri Lanka's special loan recovery provisions. The hotel operator has initiated legal challenges to contest the acquisition.
LSN Sri Lanka ·
Anilana Hotels and Properties confirmed that Sampath Bank has taken possession of its hotel properties located in Nilaweli, Trincomalee and Passikudah following enforcement action under the Recovery of Loans by Banks (Special Provisions) Act No. 04 of 1990.
The acquisition was disclosed through a corporate filing by the hotel company, which indicated the bank proceeded with the seizure of the properties as part of debt recovery proceedings. The move represents a significant development in what appears to be an unresolved financial dispute between the hospitality operator and the financial institution.
In response to the acquisition, Anilana Hotels and Properties stated it has filed two legal cases challenging the resolution. The company's decision to pursue court action suggests it contests the validity or circumstances of the bank's action under the special recovery provisions.
The Recovery of Loans by Banks (Special Provisions) Act grants financial institutions expedited powers to recover outstanding debts through asset seizure, streamlining what would otherwise be lengthy court proceedings. The legislation is frequently invoked by banks seeking to recover substantial overdue loan amounts from borrowers.