Colombo Lotus Tower embarks on trailblazing journey of success
Daily FT: In the wake of a triumphant year of operations, the Colombo Lotus Tower Management Company Ltd. stands on the cusp of a continued growth trajectory.
Since its inauguration to the public on 15 September 2022, the company has made steadfast strides in establishing and enhancing its facilities, transforming it into a commercially viable State-owned enterprise (SOE).
The Lotus Tower, once a modest stem, now stands as an awe-inspiring architectural marvel, symbolizing Sri Lanka’s rapid advancement in innovation, tourism, and entertainment.
Reflecting on this transformation Colombo Lotus Tower Management Ltd. Director and CEO Major General (Retd.) S.A.P.P. Samarasinghe noted the company’s evolution from a telecommunications hub to an emblem of Sri Lanka’s resilience and vision.
Samarasinghe attributed this achievement to a dedicated team of young professionals who turned this venture into an invaluable economic asset within a mere year, even amidst economic challenges and negative public perception.
“The Tower’s financial self-sustainability is a testament to its robust operations. It generated over Rs. 550 million in revenue by the end of July 2023 and managed to pay back a lease rental of Rs. 100 million to the Telecommunication Regulatory Commission of Sri Lanka (TRCSL) without any Government assistance. We also reinvested the additional funds in enhancing the facilities of the tower,” he told the Daily FT.
Samarasinghe said the observation deck remains a primary revenue source, contributing an average monthly income of Rs. 40-50 million. The Tower has welcomed a staggering 1.2 million visitors, including 28,000 tourists, over the past year. Beyond observation deck earnings, the company has also diversified its income streams, capitalizing on rentals from innovative centers, souvenir stores, restaurants, and entertainment events, which collectively contribute to its financial success.
With a comprehensive two-year master plan (2024-2026) developed in collaboration with volunteer professionals; Samarasinghe said the company is set to introduce a range of innovative initiatives in the last quarter of 2023.
“These initiatives encompass package ticketing strategies and the integration of additional facilities,” he said.
Notable additions to the Tower’s offerings include a revolving restaurant on the 27th floor, a digital art museum, an exclusive fine dining establishment, bungee jumping, a dedicated kids’ area, gaming zones, cultural events, and water sports facilities.
The company also aims to host regular cultural events in partnership with the University Grants Commission and the University of the Visual and Performing Arts.
“The Go Bungee project is currently underway, marked by careful planning for the ramp and the implementation of state-of-the-art safety equipment. This bungee jumping venture operates on a three-year contract, with an 80/20 revenue-sharing model,” he said.
Anticipated for a November launch, operations for the revolving restaurant are on schedule. Concurrently, a digital art museum is in development to offer an immersive experience showcasing Sri Lanka’s rich heritage, culture, and community through cutting-edge digital displays. Additionally, plans are underway for an exclusive fine dining restaurant and a designated kids’ area, all set to be operational by December as contracts for more than 10 restaurants have already been finalized.
OSL take:
Sri Lanka is currently engaged in a development programmed aimed at an overall expansion in economic activities. After facing the impacts of the global pandemic and the economic crisis that followed it, Sri Lanka is once again on a growth path indicating the resilience of the country’s economy. With Sri Lanka working towards becoming an emerging business destination in the South Asian region and the increasing economic activities, there are many new business/investment opportunities covering all sectors in the country. It is in such a backdrop that projects like Lotus Tower and others present lucrative business/investment opportunities for foreign businesses/investors. Foreign businesses could also look at developing supplementary infrastructure facilities required by the economic sectors in line with the country’s development programmed. They could also look at forming partnerships or joint ventures with local businesses with the aim of further expansion.
| Article Code : | VBS/AT/26230922/Z_4 |