Lanka Realty Investments advances strategic divestment and capital infusion

Moves aimed at strengthening balance sheet and driving future growth

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LANKA Realty Investments PLC (LRI) yesterday announced two major steps in its strategic repositioning and financial strengthening journey - the divestment of Baseline Holdings Ltd., for Rs. 1.1 billion on 18 July and a capital infusion of approximately Rs. 1.21 billion into HQ Colombo, as formally disclosed to the Colombo Stock Exchange on 11 May.

These transactions reflect LRI's clear focus on unlocking shareholder value, reducing debt, and positioning the company for long-term, sustainable growth. Together, they are expected to reduce total borrowings by approximately Rs. 1.7 billion, representing a 35% reduction in overall debt, and enhance LRI’s ability to negotiate favourable terms on accrued interest stemming from COVID-era moratoriums.

Following a period of prudent financial management during the economic downturn, LRI has emerged stable and strategically focused. With the worst of the crisis behind it, the company is now turning towards growth—supported by a strengthened balance sheet, reduced interest costs, and a disciplined investment outlook.