Sri Lankan government approves $ 70 million investment for luxury urban hotel in Colombo
Sri Lanka’s Cabinet of Ministers has granted approval for the construction of a luxury urban hotel comprising 652 rooms in Colombo 3 at an investment of US$ 70.4 million.
The proposed hotel is expected to be built as a joint effort by D.R. Home Appliances (Pvt.) Ltd. and D.R. Industries (Pvt.) Ltd.
According to local media reports, D.R. Home Appliances (Pvt.) Ltd. is a company under the group of Damro, Piyestra Furniture (Pvt.) Ltd.
Sri Lanka’s Board of Investment (BOI) has already granted approval for the project as a strategic development project under the Strategic Development Projects Act No. 14 of 2008.
Sri Lanka’s Prime Minister Mahinda Rajapaksa, in his capacity as the Minister of Economic Policy and Planning, had presented the relevant Cabinet paper that was granted approval by the Cabinet of Ministers.
The Cabinet is expected to publish a gazette notification under Section 3 (2) of the Strategic Development Projects Act No. 14 of 2008 indicating the clearances that are to be awarded for this strategic development project.
OSL take:
The country’s economic growth and the positioning of Sri Lanka as a fast growing business destination in the South Asian region have opened business opportunities in the country’s hospitality industry. The increasing economic activities in the country and the increasing number of business travelers arriving in Sri Lanka has created the need for the setting up of luxury urban hotels. Sri Lanka’s geographical positioning in the India Ocean, the many trade agreements as well as concessions enjoyed by the country and the increasing business conducive environment have all helped boost the island’s attraction as a regional business hub. The steady growth in the country’s tourism industry has also added to the growing opportunities in Sri Lanka’s leisure and hospitality industries. Therefore, the increasing economic activities have created the need for the setting up of luxury urban hotels and given the growing business potential in the country, foreign businesses/investors could confidently explore opportunities in Sri Lanka’s hospitality sector.
| Article Code : | VBS/AT/01032022/Z_3 |