Hotel projects galore with US$ 573m investments

Indunil HEWAGE

Sri Lankan tourism industry shows signs of being one of the major industries with the influx of mega hotel projects worth US $ 573 million investments and the investor-friendly policies adopted by the Government.

Economic Development Deputy Minister Lakshman Yapa Abeywardena and Sri Lanka Tourism Promotion Bureau acting Managing Director Malraj B Kiriella at the media briefing. Picture by Thushara Fernando

Economic Development Deputy Minister Lakshman Yapa Abeywardena said all hindrances that have ruined investors’ interest in investing in the tourism related activities have been removed now.

“In future, preferred and eligible investors in the tourism industry will be able to purchase land for tourism related projects at a government estimated price,” he said.

Prior to this, many investors were reluctant to invest in the tourism sector due to increased basic expenditure of a project. Earlier, investors willing to invest in the tourism industry had to pay Rs 20 million on an acre.

Having considered the hindrances faced by investors, the Cabinet has granted approval to hand over land to investors in the tourism sector at a Government estimated price.

The tourism industry is flooded with a number of industry related projects.

According to Sri Lanka Tourism figures, 99 tourism projects have been received.

Out of the 99 projects, 78 projects have been inspected. Final approval has been given to 12 projects and four projects have been rejected. Twenty one projects are also to be inspected.

The Government is optimistic that if approval is received for the remaining 95 projects, 5,938 hotel rooms can be added this year.

Out of 99 projects, over 46 projects have been submitted by local companies and 12 local projects have been approved. Under the final approved 12 projects, 625 rooms are expected to be added.