98 Acres Resort to expand in Ella with USD 5.1 million investment deal
Daily Mirror: Sri Lanka’s tourism sector is set for a significant boost following a USD 5.1 million investment agreement signed between the Board of Investment of Sri Lanka and the Vella Group to expand the luxury property 98 Acres Resort & Spa in the central highlands of Ella.
The agreement marks a major expansion of the award-winning eco-luxury resort located on a 98-acre tea estate overlooking the scenic landscapes of Ella, including views of Little Adam’s Peak.
The development will be carried out over 36 months in two phases and includes the construction of 11 luxury villas, 32 deluxe rooms, a new restaurant and kitchen, and an upgraded wellness and yoga centre. The project is expected to create around 150 direct jobs in the Uva Province.
Select new villas are expected to feature private heated pools, further enhancing the resort’s premium offering while maintaining its signature nature-integrated design.
Known for its sustainable design using recycled railway sleepers, local granite, and traditional materials, the existing 98 Acres property has built a reputation as one of Sri Lanka’s leading eco-luxury destinations. The expansion is expected to continue this approach while scaling up capacity for high-end international travellers.
Battery-powered transport within the property and low-impact architecture have been key features of the resort’s operations since its inception.
The expansion marks the second Board of Investment-approved project for Vella Group, which also operates the Ravana Pool Club in Ella. The group said the investment reflects its long-term vision of positioning Sri Lanka as a leading destination for experiential luxury tourism.
A spokesperson said the project represents a broader commitment to elevating the country’s hospitality standards while promoting sustainable tourism development.
Located near major attractions such as the Nine Arch Bridge and surrounding highland hiking trails, Ella has become one of Sri Lanka’s fastest-growing tourism hubs, attracting increasing numbers of high-spending international visitors.
Officials say the investment signals growing confidence in Sri Lanka’s luxury tourism sector and supports national efforts to promote long-stay, high-value travel experiences in emerging destinations outside the traditional coastal circuit.
OSL take:
Sri Lanka’s tourism industry is on a steady growth path, creating a wealth of business/investment opportunities for foreign businesses/investors seeking to capitalise on one of South Asia’s most promising travel destinations. The recent USD 5.1 million investment agreement between the BOI of Sri Lanka and the Vella Group to expand the renowned 98 Acres Resort & Spa in Ella underscores growing international confidence in the country’s tourism potential. As visitor arrivals continue to rise, demand is increasing across a broad spectrum of tourism-related sectors. While luxury hotels and resorts remain attractive investment avenues, significant opportunities also exist in eco-tourism, wellness and spa retreats, adventure tourism, boutique accommodation, and sustainable tourism projects that leverage Sri Lanka’s rich natural and cultural heritage. Investments in tourism infrastructure, transportation services, destination management, digital travel platforms, and hospitality training are also expected to play a vital role in supporting the sector’s expansion. With its strategic location in the Indian Ocean, diverse landscapes, year-round tourism appeal, and government support for foreign direct investment, Sri Lanka offers a compelling environment for foreign businesses/investors. As the country strengthens its position as a leading regional tourism hub, businesses that enter the market now are well placed to benefit from the sector’s long-term growth and evolving consumer demand.
| Article Code : | VBS/AT/20260610Z_1 |