Galadari Hotels (Lanka) Ltd. has seen a sizable operational loss in the first half of this year severely aggravated by continuing interest expenses, depreciation and an exchange loss that was over double the previous year's.

In an interim statement to shareholders incorporating provisional unaudited results, the company has reported a trading loss of Rs. 29.5 million, down from a profit of Rs. 35.4 million during the comparative period the previous year. The hotel was becoming operationally profitable before it was hit by last year's terrorist bomb.

Interest at Rs. 60.2 million (Rs. 56.1 million a year earlier), depreciation of Rs. 49.4 million (Rs. 48.8 million) and an exchange loss of Rs. 114.6 million (Rs. 52.2 million) have all contributed to a whopping pre-tax loss of Rs. 253.8 million during the half-year under review, up from a loss of Rs. 121.6 million a year earlier.

With brought forward losses of Rs. 3.3 billion, the company is now carrying forward a loss Rs. 3.6 billion, twice its issued share capital of Rs. 1.8 billion.

The directors have said that the hotel that was damaged by a bomb blast last October has received Rs. 350 million as soft loans from government to pay for necessary repairs and refurbishment.

The phased re-opening of the hotel has begun with four guest floors and the coffee shop operational, they have said.