Sri Lanka’s Board of Investment signs US$ 4.5 million investment agreement for boutique hotel
The Board of Investment of Sri Lanka has reportedly signed an investment agreement with Sundara (Pvt) Ltd to develop a US$ 4.5 million boutique hotel on the country’s south coast.
“When the tourism industry is faced with setbacks, the significance of this investment is that there is greater confidence on Sri Lanka’s economy and tourism sector,” Board of Investment Chairman Mangala Yapa has been quoted as saying in the media.
Sundara (Pvt) Ltd Co-Founder Dale Rennie has stated that the investment is being made due to Sri Lanka’s long-term tourism potential.
“We are looking at the next 5-10 years,” he has said.
The property, named The Plantation Koggala, will have 14 residency villas, each with a pool, the media has reported.
Investors in the villas have the option of living in them or allowing the hotel management to rent them out and receive a 7 percent annual return, Rennie has explained.
According to him, 50 percent of the villas have already been sold.
The property have been marketed to investors in the US, Australia, UK, Hong Kong, Singapore, Germany and Switzerland.
The hotel is to be built on a former cinnamon plantation.
Construction of the project is scheduled to commence in a month.
Rennie has further noted that another hotel, of 12-rooms, is currently in the planning stages in Ahungalla, which will receive an investment of around 300,000-400,000 US dollars.
OSL take:
Despite the temporary setback faced by Sri Lanka’s tourism sector, foreign investors believe in the sector’s future potential. The government of Sri Lanka has introduced a relief package to the tourism sector and tourism authorities have commenced promotional campaigns as well. This has resulted in an increase in tourist arrivals to the country. Therefore, foreign businesses/investors could explore business/investment opportunities in Sri Lanka’s tourism sector.
| Article Code : | VBS/AT/04062019/Z_3 |