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Pine Capital terminates MOU to develop land in Sri Lanka

PINE Capital Group has terminated an agreement with a Sri Lanka provincial council to develop land there.

This is due to the "political situation and other complex factors in Sri Lanka which has undermined investor confidence", the Catalist-listed investment firm said in a bourse filing on Thursday. The memorandum of understanding (MOU) was for Pine Capital to invest in and develop land parcel in the Eastern Province of Sri Lanka.

The council accepted Pine Capital's notice of termination on Wednesday. 

In December last year, Pine Capital said the total investment in the project was conservatively expected to be at least US$3 billion.

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The company had said then that it envisions an integrated hospitality and lifestyle township comprising luxury resorts, hotels, serviced apartments, an international fashion design institute, and a convention centre to cater for fashion and lifestyle events.

Subsequently in July this year, Pine Capital entered into an agreement to extend the MOU for a year from June 19, 2019, till June 18, 2020.

Earlier this week, the company which recently ended its legal tussle with a former chairman, announced that its latest executive chairman had left the company.

Trading in Pine Capital shares has been suspended since March.