The latest entrant to the hotel trade, Nahil Wijesuriya, wants the tourism authorities to exempt his property Continental Hotel, from the minimum room rate charge bracket owing to 'exceptional circumstances'.

Mr. Wijesuriya told The Sunday Times FT that he wrote to Minister of Tourism, Milinda Moragoda early last month to either dispense with the ' minimum rate band' altogether or grant exemptions to continental.

"The poor occupancy rates this year been further drastically affected by the security measures taken after the recent suicide blast near the Hilton hotel. The inner and outer perimeter controls have been intensified with 100 percent interrogation and searches of vehicles heading north from the Galle Face round-about and at the Lotus Road access. This is making the main approaches to our hotel less and less user friendly, with drastic consequences," Mr. Wijesuriya said.

He said Continental is uniquely disadvantaged as the hotel is also access to the President's House, the Central Bank of Sri Lanka, Navy headquarters and the residence of the Commander of the Navy, and the residences of other VVIPS.

"While we appreciate the security requirement as administered, our organisation requires the flexibility and the freedom of running our business at rates that help all our stakeholders, under the present circumstance," he added.

On Tuesday Mr. Wijesuriya also wrote to the Chairman, Consumer Affairs Authority (CAA) Rumy Marzook, saying that the jointly agreed arrangement by the owners of Colombo hotels to set a minimum room rate charge can be considered restrictive practice according to the CAA Act. "Under the functions of the CAA, Section 35 prohibits anti competitive practices," he noted. "I bought this to the notice of the CAA Chairman," he added.

Continental for a Share Split
Hotel Services (Ceylon) Ltd, holding company of Continental Hotel is gearing up for a share split, in a bid to make the share more attractive to small shareholders, according to Continental sources.

"Presently the share is moving around Rs.138 to Rs.140 and they may try to split it 10 to 1," a Continental source told The Sunday Times FT. He further explained that the new owner, Nahil Wijesuriya (who bought the new company early this year) wants to bring the hotel services share price around Rs.10 to Rs.15 range. "By doing this he wants to make it more attractive to minority holders," he added.

He also said that Mr. Wijesuriya will buy the seven percent that former owner U.K. Sharma holds in the company, by the end of the year. "On Tuesday he bought 143,100 shares worth Rs.20 million from the market," he said.

He added this will be a gradual process. "Before the year ends Mr Wijesuriya will buy Mr. Sharma's stake," he said..