Thailand-based Six Senses Resorts and Spas is planning a regional headquarters in Sri Lanka's capital Colombo to own and manage up to 200 million dollars in leisure assets in the Indian Ocean, chairman Sonu Shivdasani said.It is also building a 40 million dollar hotel with Sri Lanka's Aitken Spence group in the south western coast of the island.
A 30-year war ended in May 2009, and tourism arrivals to Sri Lanka are up 43 percent to October.
"Over time tourism will become a dominant part of the economy in Sri Lanka, so it makes sense for us to operate in a country like that," Shivdasani said.
"Since the return of peace I see Sri Lanka becoming an important regional hub."
He said the proximity to the Maldives where it now has three resorts, plans for projects in Andaman Islands in India and Mauritius made Colombo the obvious location to house the regional hub.
The Sri Lankan based unit will eventually own between 150-200 million dollars in equity in several projects in the Indian Ocean and also oversee resorts managed by Six Senses.Shivdasani said the ready availability of accountants and legal services in Sri Lanka also helped in the decision to locate the regional headquarters to Colombo.
Sri Lanka's central bank recently relaxed exchange controls, which Governor Nivard Cabraal said will make it easier for international businesses to set up regional offices in the island.
Sri Lanka started a soft-pegged central bank in 1950 abolishing a currency board or hard peg which allowed free capital movement, low inflation and exchange rate stability.
But exchange controls were slapped within two years of starting a money printing central bank and the economy was progressively closed, until 1977, when economic freedoms of the people started to be restored partially.
Treasury secretary P B Jayasundera told a recent forum in Colombo that the island will have the best personal income regime in the region to encourage services sector talent.
Jayasundera said at least two major corporations which he did not name were interested in setting up regional offices in Colombo.
Officials say the end of a war in 2009 has made Sri Lanka among the safest locations in the world to locate firms.
The regional headquarters will oversee a 1,500 strong workforce. Many Sri Lankans already work in Maldivian resorts.
Shivdasani said tourism in Asia was picking up and his own group was expecting room revenue from hotels to grow 50 percent to 150 million US dollars this year while spas are expected to bring 25 million US dollars, up from 20 million last year.
Shivdasani said its high end 'Soneva' brand resorts in the Maldives yield an average of 1,000 dollars a room, while one exclusive villa is sold for 10,000 dollars a day.
In Sri Lanka it is building a 'Six Senses' brand resort which is priced around 400 US dollars a day.
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well said "Over time tourism will become a dominant part of the economy in Sri Lanka, so it makes sense for us to operate in a country like that," Shivdasani said.
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