Galle Face Icon to receive significant chunk of Ceylon Land’s Rs.4.3bn rights issue

Ceylon Land & Equity PLC has announced a rights issue to raise approximately Rs. 4.3 billion, a significant portion of which is earmarked to fund the completion of the “Galle Face Icon,” a flagship mixed-use development project in Colombo 03. According to a circular dated February 13, 2026, the Board of Directors resolved on January 31, 2026, to issue 614,156,734 new Ordinary Voting Shares at a price of Rs. 7.00 per share. These shares are offered in the proportion of two new shares for every one existing share held.

Shareholders are scheduled to vote on the resolution at an Extraordinary General Meeting (EGM) to be held on March 3, 2026, at 9.30 a.m. at No. 193, Dr. Danister De Silva Mawatha, Colombo 08. The new shares will be offered to existing shareholders registered as of the end of trading on the record date, March 5, 2026. The company stated that while the new shares will rank pari passu with the existing issued ordinary shares, they will be entitled to dividends only if declared after the final allotment of the rights issue. A primary objective of the capital infusion is to channel Rs. 1.75 billion into the company’s subsidiary, Galle Face Properties Ltd, to finance the ongoing construction of the Galle Face Icon. Situated on 85 perches of prime real estate between the Beira Lake and Galle Face Green, the development is designed to feature Grade A office spaces, a private members’ club, and extensive parking facilities. The project is currently in the superstructure phase and is expected to be ready for commercial occupation within approximately 20 months from April 2026. Upon completion of this investment, Ceylon Land & Equity will hold 50 percent of the ordinary voting shares in Galle Face Properties Ltd.

In addition to the property investment, the rights issue is structured to significantly deleverage the company’s balance sheet. Approximately Rs. 1.7 billion of the proceeds has been allocated to settle short-term interest-bearing loans, including a Rs. 750 million facility from Hatton National Bank PLC and Rs. 950 million in intercompany borrowings from Renuka Developments (Pvt) Ltd and Shaw Wallace Ceylon Ltd. This strategic move is intended to reduce interest expenses and strengthen the company’s financial standing as it pursues its investment objectives.

The company also plans to utilize Rs. 702 million to subscribe to a rights issue of another subsidiary, The Cargo Boat Investment Company Ltd, to bolster its portfolio management capabilities, while Rs. 70 million has been set aside for future equity investments. 

The rights issue is supported by the majority shareholders, subsidiaries of Renuka Holdings PLC, who have confirmed their intention to subscribe to their full entitlement. This announcement follows the company’s recent move in January 2026 to increase its stake in Shaw Wallace & Hedges Ltd to 49 percent, consolidating it as a subsidiary and further aligning the group’s property and investment interests.