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by Shirajiv Sirimane

The Ceylon Hotels Corporation (CHC) will sign two MoUs with the Mahaweli Authority and a UK based Sri Lankan to lease properties in the North East for hotel projects.

According to Chairman CHC, Bodhi Ranasinghe the corporation will spend nearly Rs. 10 million to upgrade these properties. He said profits generated in recent times would be utilised for these investments.

He said they would sign an MoU with a Sri Lankan based in the United Kingdom to take over the management of the 10-room Maria Hotel in Jaffna. "This is for a five-year lease and we will initially invest Rs. 5 million to upgrade this hotel and it would be operational from October this year."

Ranasinghe said that they will sign a MoU with the Mahaweli Authority to take over the management of Ruhunuketha in Manampitiya. "This property is en route to Pasikuda and we hope to offer quality accommodation for locals and foreigners."

He said that the other property they acquired from Mahaweli is in Kandy and the CHC would invest around Rs. 5 million to redevelop these properties. "We are also investing Rs. 5 million to upgrade the Polonnnaruwa rest house." He said that the CHC was running at a Rs. 20 million loss last year and added that with the peace process and more areas opening up for local tourists they are hoping to break even towards the end of this year and make profits by the end of the year.

He said that the CHC also introduced a Voluntary Retirement Scheme (VRS) last year to discontinue the employment of their staff. "This too is contributing towards income and we invested Rs. 20 million on this VRS scheme." He said that they now have 24 properties and operate with a staff of 497.

Ranasinghe who counts over 20 years experience in the hotels' trade said that some of their prime properties in Elle, Kitulgala and Ambepussa are bringing them very good returns. "We have an average income of around Rs. one million a day from the Ambepussa property. This property is over 100 years and it has received very good publicity in recent times."

The Chairman said that since some of their properties such as Ambepussa, Kitulgala, Polonnaruwa, Elle and Hanwella are over 100 years old and have a colonial touch they are popular among the British clientele.

"We also have a steady clientele from India. However, our priorities are for locals and we patronage for around 85% Sri Lankans."

He said that their concept is to provide meals and accommodation for locals at an affordable price and they will maintain their concept in the future as well. "We will never go in for a property over three stars due to this reason," he said.

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