Dolekanda Power (Private) Limited has been unable to obtain energy permits from the Sustainable Energy Authority (SEA) for its two 3.0 MW mini-hydropower projects named Rakwana I and Rakwana II in its IPO prospectus, due to a dispute in resource allocation.

The total funds allocated from the Rs. 600 million IPO for these two hydropower projects is Rs. 225 million.
The unutilized IPO funds currently invested with financial institutions by FLC Holdings PLC in short term deposits receive income interests ranging from 4.20 to 7.0 per cent per annum subject to withholding tax at 10 per cent.

Meanwhile, FLC Properties (Private) Limited, a fully owned subsidiary of FLC Holdings PLC has given on lease all floors of FLC Tower at No. 19, Dudley Senanayake Mawatha, Colombo 8 after the additional 33.75 perch car parking facility for its tenants was provided at a separate land purchased at a cost of Rs. 113.40 million at No. 5, Sumner Place, Colombo 8.

FLC Holdings has decided to invest Rs. 225 million initially allocate to the two hydro power projects out of the IPO funds in FLC Properties (Private) Limited which is a fully owned subsidiary of FLC Holdings, by purchasing 22.50 million ordinary shares at Rs. 10 each to save the interest cost of FLC Properties (Private) Limited which is currently paying 11.0 per cent per annum and also to avoid corporate tax on the income of temporary inter-company loan interest at 28 per cent by FLC Holdings.

With this infusion of equity funds FLC Properties is confident of recording profits for 2015/2016 and to declare dividends for FLC Holdings PLC being the only shareholder of FLC Properties (Private) Limited.