Kani Lanka invests Rs.1.2 billion for Six Star hotel in Kalutara

BY SHIRAJIV Sirimane

KANI LANKA Resort and Spa would invest Rs. 1.2 billion to construct a 60 room six star hotel in Kalutara. The project to be commenced next year would be completed by 2007.

Kani Group Chairman in the Maldives and Sepriya Lanka Limited, Bandhu Saleem, who was in Colombo yesterday said that Sri Lankan tourism industry is growing and they anticipate a demand for up market properties in the future.

"We have strong faith in the destination and this is why we are ready to invest in Sri Lank again," he said.

Sri Lanka has encountered many crisis both politically and also by way of natural disasters such as the tsunami. Each time Sri Lanka recovered strongly and this is an encouragement for investors.

Saleem said that they have already acquired Sindbad Garden Hotel, for this project and funds within the group would be utilised for the investment. "With the present positive tourism trend in Sri Lanka we are confident that the pay back time is going to be too far out," he said.

The group based in the Maldives, owning a 150 room resort and into air services and other activities for nearly two decades, first invested in Sri Lanka in 1998 when they acquired Sindbad Hotel in Kalutara from the DFCC Bank.

"The group invested Rs. 340 million to redevelop the property from a two star to a four star hotel," he said.

Maldivian architect Ishan Saed, redesigned the hotel. It was renamed as Kani Lanka Resort and Spa and on December 24 after being closed for nearly nine months for a major refurbishment.

However soon after the opening, the tsunami damaged the property causing severe damage to the ground floor rooms, kitchens, restaurants, power and air conditioning plants and the garden.

"This did not disappoint us as we immediately invested a further Rs. 210 million to restore the hotel.

The six star hotel would be built along side the Kani Lanka Hotel so that the guests would have the choice of two priorities. The group is planning to market a both Maldives and Sri Lanka in one package. "This is very easy since there are 20 air frequencies between Colombo and Male every week," he said.

Kani Lanka Sales and Marketing Manager Arjuna Padmaperuma, said that the demand from the local travelers too are increasing specially during the weekends and they are expecting to operate on a 70 percent occupancy by the end of the year.

Kani Lanka Report and Spa which is now operational, offers 105 superior rooms and six suites which include air-conditioning, bath tubs, CD and VCD players, satellite channels TV, and many other facilities.