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Government to lease out 12 islands to investors for new Sri Lanka hotels

  • 07-Sep-10 09:33
  • Sri Lanka
  • Travel Biz Monitor

The government of Sri Lanka will be leasing approximately 5,500 acres of land spread across 12 islands in the region to potential investors who are looking to set up new Sri Lanka hotels and resorts to keep up with the growing demand of travellers.

Government to lease out 12 islands to investors for new Sri Lanka hotels

Sri Lanka's government has agreed to lease out 12 islands in the Kalpitiya area of Western Sri Lanka to investors who are interested in setting up new Sri Lanka hotels and resorts.

There has been a significant increase in tourists taking Sri Lanka holidays this year and Sri Lanka Tourism is has set a target of 2.5 million foreign visitor arrivals by 2015.

Dr Nalaka Godahewa, Chairman of Sri Lanka Tourism, said: "We need to have around 30,000 more hotel rooms to achieve the target growth. We have achieved a growth of more than 40 per cent in arrival numbers in the first half of the current year and hope to achieve the target of 2.5 million before 2015."

The government will be leasing approximately 5,500 acres of land spread across the 12 islands which are located near the country's capital, Colombo. The process is expected to commence within a month and the lease period will be for 35 years.

Godahewa explained that Sri Lanka Tourism is identifying more locations in the region to develop tourism including Sri Lanka hotels, marinas, entertainment centres and convention centres.

When asked about investors, he said: "We can think of separate tax holidays for investments amounting to more than USD 500, 000" and that he expects Indian investors to bring between US$300 and $400 million to the island nation.

Godahewa added that land has been identified in the north and east regions of the country for the development of luxury hotels in Sri Lanka with beach and islands resorts.

Sri Lanka is located 31km off the southern coast of India in the Indian Ocean and is made up an array of breathtaking scenery including pristine white sand beaches, lush green rolling hills, and mountainous terrain in the south of the island.

Since the recent end of nearly three decade-long civil war, the island is recovering and tourism is once again growing as travellers flock to the idyllic country and luxury Sri Lanka hotels for tropical holidays, romantic weddings and honeymoons.

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