03rd May 2010, www.lankabusinessonline.com
Habarana Lodge has signed a deal with the Board of Investment to invest 2.5 million US dollars to re-furbish and upgrade its hotel in north-central Sri Lanka, the investment promotion agency said.
The 140-room Cinnamon Lodge Hotel at Habarana, part of the John Keells group hotel chain, will be upgraded to a five-star rated hotel, the BOI statement said.
"The hotel is expected to attract more guests with the boom in the tourism industry."
BOI approval for projects enables companies to be entitled to incentives like tax breaks and duty free import of equipment and raw materials.
Sri Lanka's tourist industry has revived with a sharp upturn in arrivals following the end of the 30-year ethnic war last May.
The BOI statement also said it signed another deal with Emmaus Industries for a venture to manufacture ladies footwear for the export market to be supplied to well known brands in the European Union and USA.
The joint venture between Italy and Sri Lanka represents an investment of over 650,000 US dollars, the BOI said.
The manufacturing plant established in the industrial estate in Dankotuwa, north of Colombo, is expected to provide employment for a work force of 220.