"The company’s unaudited financial statements for the quarter ended March 31, 2012 discloses that it’s currently facing position of serious loss of capital," the Colombo-based hotel said.
The EGM is scheduled for May 29.
One of the capital’s long-standing five-star properties, the hotel was founded by the Dubai-based Galadari group and it has foreign exchange loans.
In the December 2011 quarter the firm lost 199.6 million rupees, worsened by a 191 million rupee exchange loss as the rupee fell by around 3 percent in November.
The hotel had planned a debt equity swap to strengthen its balance sheet.
Galadari Hotel had 8.3 billion rupees in gross assets, 9.1 billion rupees in accumulated losses and 6.8 billion rupees in loans.
But with an 8.5 billion rupee revaluation reserve it still had 1.3 billion rupees of net assets by end December 2012, down from 1.5 billion a year earlier.
In the March quarter however the rupee fell further to around 130 rupees to the US dollar as the island's Central Bank tried to control both the exchange rate and interest rate by printing money.
The March quarter accounts have not yet been released to the market. There has also been no profit warning.
Among key shareholders is the Employees' Provident Fund, a retirement fund of private citizens managed by the Central Bank, which owns 13 percent of the hotel. The stock purchase is among the most controversial made by the fund.