Tuesday May 05, 2026
Tuesday May 05, 2026
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The Commercial High Court has delivered a decisive ruling confirming that the boutique hotel Tamarind Hill in Galle is to be brought under the control of the court-appointed liquidator of Asia Leisure Ltd., dismissing attempts by Asia Leisure Holdings Ltd., and Asia Capital PLC to block the move.
The ruling follows the winding up of Asia Leisure Ltd., which has long operated Tamarind Hill.
Following his appointment, the liquidator moved to take possession of the hotel as part of the company’s assets, in accordance with his statutory duty under the Companies Act. That move was challenged by Asia Leisure Holdings Ltd., while Asia Capital PLC sought to intervene as a creditor and shareholder.
In its order dated 23 April 2026, the Court dismissed both the objections and the application seeking to restrain the liquidator, holding that the liquidation process could not be obstructed by parties lacking proper legal standing.
At the heart of the dispute was whether Tamarind Hill forms part of the assets of the company under liquidation. The Court held that it does, at least in respect of the business and operations conducted at the premises, noting that the hotel continues to be registered in the name of Asia Leisure Ltd., with the Sri Lanka Tourism Development Authority.
The Court further noted that the hotel had continued operations even after the winding up order, without being handed over to the liquidator, and that control appeared to have shifted to a related entity without lawful basis. In that context, allowing the liquidator to take possession was necessary to ensure the proper administration of the liquidation.
The Court confirmed the liquidator’s authority to take control of Tamarind Hill and directed that the Fiscal assist in giving effect to that process. All parties, including Asia Capital PLC and Asia Leisure Holdings Ltd., were ordered to refrain from interfering with the liquidator in the discharge of his duties.
The ruling reinforces a fundamental principle of insolvency law: once a company is wound up, control of its assets vests in the liquidator, and related parties cannot sidestep the statutory process to retain control.
Avindra Rodrigo, President’s Counsel, appeared with Kalpani Ratnayake for the Petitioners. Dinal Phillips, President’s Counsel, appeared for Asia Capital PLC, and Shivan Cooray appeared for Asia Leisure Holdings Ltd. Hafeel Farisz appeared for the liquidator.
