Sri Lanka to Add 3,000 Star Class Hotel Rooms by End of 2012

08th March 2012, www.dailynews.lk, By Shirajiv Sirimane

Sri Lanka would add 3,000 star class hotel rooms by the year end with over 1,000 rooms being added in Passikudah.Deputy Minister of Economic Development, Lakshman Yapa Abeywardane told ‘Daily News business’ that with peace, Sri Lanka has become a investment paradise for both local and foreign hoteliers and investors. The Citrus group which opened in Hikkaduwa would add around 100 rooms in Waskaduwa. Director of the group Mani Sugathapala said that the response for their new hotel in Hikkaduwa was very good as they maintained 95% occupancy since their opening.

“The average service charge from our guests was nearly Rs. 30,000” he said. Currently a 125 room three star resort is being built in Uda Walawa, which would be ready by the end of the year while several hotel projects that commenced last year would be completed for winter.

The minister said that in Trincomalee too new hotels are coming up and most of the new hotels are owned by new players to the industry who are exploiting the booming local hotel industry. In addition several more hotels have also added rooms.

He said that in addition to Shangri-La and CATIK Corporation both from China, leading global hotel chain Hyatt too has once again expressed interest to get involved with the abandoned Hyatt Residencies a stalled project by entrepreneur, Lalith Kotelawela. In addition an Israeli hotel investor has come forward to build a 150 hotel complex in Koggala with a local tea exporter.

Investors from Qatar are likely to build a 500 room resort in one of the islands in Kalpitiya and with this investment they would also invest to extend the Colombo Katunayake highway up to Kalpitiya.

Tourist arrivals to Sri Lanka has clearly shown an increase with a 30.8% growth last year accounting to 855,975 arrivals. Number of popular world magazines, such as National Geographic, Conde Nast Traveler, New York Times, Lonely Planet has recommended Sri Lanka as a must destination to visit in 2011 and 2012 thereby adding value to the destination.

The National Geographic magazine went to the extent of identifying Grand Hotel Nuwaral Eliya as one of the best hotels to visit in 2012. Meanwhile German Tour operators who brought in highest number of tourists to Sri Lanka in 2011 were also honoured yesterday in recognition to the contribution made to Sri Lanka Tourism.

The best German Tour Operators for 2011 - DERTOUR/MWR Group, Ground handling -Go Vacations (Jetwing Travels), Second place, F T I Group, (Journey Scapes Pvt Ltd.),Third Place, Diethelm Travels.

Related Info :

• Sri Lanka Tourism Statistics and Tourist Arrivals

• Sri Lanka Shangri La Colombo Hotel Construction Begins. 661 Room Hotel to Occupy 10 Acres of Land Facing Galle Face Green Promenade

Sri Lanka's Raigam Starts Pure Salt Plant in Puttalam

04th March 2012, sundaytimes.lk, By Duruthu Edirimuni Chandrasekera

Raigam Wayamba Salterns, a subsidiary of the Raigam Group, began commercial production of its Pure Vacuum Dried (PVD) salt plant in Palavi in Puttalam recently where it would be producing 100 % impurities-free salt, Raigam Chairman Dr. Ravi Liyanage said.

"We already had orders placed even before starting production and these are adequate enough to run the plant with significant gains," Dr. Liyanage told the Business Times. He explained that this PVD process has an embedded vacuum evaporation technology which ensure that salt is 100 % free from any impurities and quality is consistent despite any condition of input raw salt. The input salt is fed in a form of a dissolved slug which is put to different high – tech processes like milling, centrifuging, evaporating, drying, etc under extreme temperature conditions to bring out a final output of ‘pure’ salt, Dr Liyanage explained further.

Demand for Pure Salt
Featured quality consistency and characteristics of PVD salt which differentiates it from any other salt has a significant demand not only in Sri Lanka but in world context as well. Dr Liyanage pointed out that the country's industrial requirement of pure salt is about 100 Metric Tonnes (MT) a month. "At present all of this is mainly imported from Thailand. This salt is used in the food and beverage industry as well as the leisure (hotels) industry," he said.

He added that this state of art modern plant has a production capacity of 0.5 MT per hour and also has the capacity for continuous for all 365 days of the year. The company has invested more than Rs. 50 million for the plant so far, which has generated 30 new employment opportunities. Dr Liyanage said that Raigam intends to offer the product to the export market provided the local demand is first fulfilled.

Raigam group has three companies for salt business - Raigam Wayamba Salterns PLC (at Palavi in Puttalam), Southern Salt Company (Pvt) Ltd (at Bata-atha in Tangalle), and Raigam Eastern Salt Company (Pvt) Ltd (at Kuchchaveli in Trincomalee). Additionally, Raigam is the main private party shareholder of Puttalam Salt Ltd and Raigam Wayamba Salterns PLC.

Reduced Demand
Dr Liyanage noted that now the country’s imported salt requirement has reduced to 20,000 Metric Tonnes (MT) per annum from the earlier 45,000 MT owing to the local salt production drive by firms such as Raigam and that imports could be brought down to 10,000 MT this year.

“During the past two years, the total imports have reduced to 20,000 MT from the more than 45,000 MT which was one third of the national requirement in 2007,” he said. Dr. Liyanage said the salt industry has significant potential to develop as the country is surrounded by the sea and the tropical weather is conducive to the production of salt. "But this year the weather was not all that good for salt harvesting,” he added, explaining that salt production is sensitive towards the weather conditions and that any unfavourable weather conditions will affect the production of the company in inverse manner.

Raigam’s Future Moves
He said that Raigam will be moving into eco tourism at their saltern operations, which will be a new experience to both local and foreign tourists. Dr. Liyanage added that for Raigam's eco-tourism project, the planned capital investment

is Rs. 200 million. “This will be branded as the ‘Salt Experience’ and this is the world’s second resort hotel chain which will be adjoining a saltern,” he said. The first chain is in Thailand. “The envisaged tourist operation does not have any disturbance to the salt operation and it is a value addition to the saltern,” Dr. Liyanage said, adding that the company is currently in the process of obtaining relevant approvals from affiliated authorities.

For developing salterns and setting up new factories, the company has planned an investment of Rs. 300 million.

Related Info :

• Sri Lanka's Raigam to Invest in Salterns and Chemical Plants

• Sri Lanka's Raigam Promotes Tourism in the Saltern in Kuchchaveli

Sri Lanka Tourism Focuses on Asia & Middle East over Europe. China to be Targeted in the Next 5 Years

04th March 2012, www.island.lk

A top official in the tourism industry says that tourism growth potential lies in Asia and Middle East compared to Europe, therefore Sri Lanka Tourism will focus more on these regions, especially China in the next 5 years.

Dr. Nalaka Godahewa, Chairman, Sri Lanka Tourism, addressed the members of The Council for Business with Britain (CBB) of the Ceylon Chamber of Commerce recently. He highlighted the vision of President Mahinda Rajapaksa for the tourism industry, the worldlargest service industry. The presentation was titled "Towards 2.5 million Visitors by 2016 - Where are we now and a Policy Framework to get there".

Dr. Godahewa pointed out that according to UNWTO, tourism in Asia Pacific region is expected to grow by 4%-6% p.a. He also highlighted some key tourism objectives of Sri Lanka. They are positioning Sri Lanka as one of the most sought after tourist destinations, promoting tourism to reach annual tourist arrivals target of 2.5 Mn by 2016, increasing the annual foreign exchange earnings to USD 2.75 Bn by 2016, attracting USD 3 Bn or more foreign direct investments (FDI) to the country within the next 5 years. Increasing the room capacity to 45,000 by 2016 and also achieve 500,000 direct and indirect employment within the next 5 years.

He stated that Sri Lanka Tourism’s focus is on creating an environment conducive for tourism to attract new tourists, to improve the global perspective about Sri Lanka and most importantly to make the tourists who come here leave the country with a good impression. He also shared the policy framework designed towards these objectives. They included infrastructure developments, projects on offer, a one stop unit (OSU) established in September 2010 at the Sri Lanka Tourism Development Authority to support Tourism Related investments.

Speaking about marketing Sri Lanka as a tourist destination Dr. Godahewa emphasized the core strengths of Sri Lanka being, authenticity, compactness and diversity that no other country could match. Considering the growth statistics and trends he identified that growth potential lies in Asia and Middle East compared to Europe, therefore Sri Lanka Tourism will focus more on these regions, especially China in the next 5 years. Concluding his presentation Dr. Godahewa invited all stakeholders of the tourism industry to join hands towards one dream, "Refreshingly Sri Lanka – Wonder of Asia"

Nick Nicolaou, Chairman – CBB delivering the concluding remarks said that the Council organizes a series of similar events throughout the year for the benefit of its members, ranging from luncheon meetings with guests speakers on topical interest to sporting and social activities and informed members to await details of the next CBB event; a field visit to Jaffna to explore the opportunities present in the North.

Sri Lanka's Mattala Airport Promoted at Travel Trade Show Berlin ITB. Number of Sri Lankan Travel & Tour and Hotel Firms Take Part in the Trade Fair

06th March 2012, www.dailynews.lk, By Shirajiv Sirimane

For the first time the Mattala International Airport would be marketed at the Travel Trade Show Berlin (ITB) as a strong team from the Aviation Authority is attending it. In addition a strong Sri Lankan contingent would be participating at the ITB which will begin tomorrow in Berlin, Germany. Speaking to Daily News Business, Airports and Aviation Services Limited (AASL), Chairman Prasanna Wickramasuriya said “ITB is the world's leading travel trade show and we intend to market passenger, cargo, courier and charter segments of the Mattala International Airport in Germany and other international markets in general through this year's ITB in Berlin.”

Travel and tourism accounts for 258 million jobs globally. At US $ 6 trillion (9.1% of GDP) the sector is a key driver for investment and economic growth and at a global level. It is larger than the automotive industry at 8% GDP, and just smaller than banking at 11%.

Raimund Hosch, CEO Messe Berlin GmbH, will welcome around 4,500 international industry representatives at the opening event.

Among those due to speak are Taleb Rifai, Secretary General of the World Tourism Organization (UNWTO) and Klaus Laepple, President of the German Tourism Industry (BTW).


Mounir Fahkri Abdel Nour, the Egyptian Minister for Tourism, will speak on behalf of Egypt, the partner country of ITB. “Our key challenge in the industry is to stimulate jobs and investment, eliminating barriers to travel such as visa restrictions, taxation, and outmoded infrastructure systems.

I am confident that these issues will be addressed at Europe's premier travel trade fair - ITB Berlin. It is the key place to learn about new trends, market developments, and to deepen existing business relations,” he said.

The following companies would participate in the event:

Airwing Tours, Aitken Spence Travels (Pvt) Ltd, Amaya Leisure PLC, Andrew the Travel Company (Pvt) Limited, Asian Adventures, Asian Exotica Ltd, Asian Wings, Barberyn Ayurveda Resorts, CCC Solutions (Pvt) Limited, Ceylon Tea Trails (Pvt) Ltd, Ceylon Tours Limited, Citrus Leisure PLC, Colombo Fort Hotels Limited, Columbus Tours Pvt Ltd, Connaissance De Ceylan Pvt Ltd, Crystal Holidays (Pvt) Ltd, Eco Team (Pvt) Ltd, Get Into Lanka Travels and Tours (Pvt) Ltd, Goldi Sands Hotels Limited, Hawk Travels Pvt Ltd, Hayleys Tours, Heritage Expediciones (Pvt) Ltd, Hilton Colombo, Hotel Clarion, JF Tours and Travels, Jetwing Hotels Ltd, Jetwing Travels, JourneyScapes (Pvt) Ltd, Koggala Beach Hotel, Lanka Holidays.net, Lanka Sportreizen, Let's Travels (Pvt) Ltd, LOLC Leisure, Mahaweli Reach Hotel, Mandara Hotels and Rosen Tours, Mount Lavinia Hotel / Club Bentota, NKAR Travels and Tours (Pvt) Ltd, Oasis Ayurveda, Orient Tours, Pigeon Island Beach Resort, Ramada Colombo, Serendib Leisure Management Limited, Serene Pavillion (Pvt) Ltd, Siddhalepa Ayurveda Health Resort, Sunway Holidays, Taj Hotels - Sri Lanka, Tangerine Group of Hotels, Tangerine Tours Ltd, Taprospa Spa's and Resort and Mackwood Travels, The Blue Water, The Fortress, Uga Resorts and United Holidays (Pvt) Ltd, and Walkers Tours Limited.


Related Info :

• Sri Lanka's Mattala International Airport to be Ready in 2012. Hambantota Airport will be an Alternative to BIA, Colombo

• Japan Finnaces Sri Lanka Airport Expansion. Bandaranaike International Airport Sees Congestion Amid a Boom in Air Traffic

Foreign Holdings of Sri Lanka Government Bonds Increase

05th March 2012, www.island.lk

Foreign investor holdings in Sri Lanka government bonds rose to 225 billion rupees in the week ending February 29, up from 212 billion rupees a week earlier, official data showed.

Treasury bill holdings rose to 91 billion rupees from 84 billion rupees a year earlier, Central Bank data showed.

The bill holding has tended to fluctuate from week to week.

Sri Lanka’s government bonds yield over 10 percent a year and the rupee fell from around 110 to 120 following several months of sterilized interventions.

The central bank has said interventions may continue for at least two to three months for about 850 million US dollars.

Sterilization of those interventions would continue to put pressure on the rupee, analysts have warned.

Sri Lanka’s forex pressure came from developments in domestic credit market to which ‘hot money’ outflows have not contributed so far.


Related Info :

• There is No Capital Flight from Sri Lanka - Central Bank. IMF Deal to be Resumed

China Grants $278mn Loan for Matara Kataragama Railway Extension Project

05th March 2012, www.island.lk

The Chinese government has approved a loan of US$ 278.2 million through its Export–Import (Exim) Bank on concessional terms to finance the construction of Matara – Beliatta Section (Phase I) of Matara - Kataragama Railway Extension Project, the ministry of Finance and Planning announced yesterday.

"The Matara – Beliatta Section consists of construction of 26.75 km long single line broad gauge rail track including construction of structures such as culverts, bridges over rivers, viaducts those required over the Nilwala river flood plain, level crossings, underpass boxes, road diversion, 4 numbers of railway stations and functional requirements including construction of railway quarters for staff, earth embankments, cut embankments and ground treatment etc," the Treasury said in statement.

"This is the first Phase of the Matara - Kataragama Railway Extension Project. It is expected to construct the railway line from Beliatta to Hambantota and Hambantota to Kataragama under Phase II and Phase III respectively.

"The construction of the new railway will provide an efficient and environmentally friendly mode of transport to cater increasing demand for transport due to developments in Southern region with the operation of new port and airport at Hambantota.".

Related Info :

• Sri Lana's Northern Railway Line Restoration to Receive $ 382mn from India

World Economic Forum in Davos Recognizes Sri Lanka's Asanga as a Young Global Leader

06th March 2012, www.dailynews.lk

During the annual meeting of the World Economic Forum in Davos, Switzerland this year, 192 exceptional individuals from around the world received their official nomination as Young Global Leaders. Asanga Abeyagoonasekera was selected from Sri Lanka as an emerging young global leader.

This new global undertaking, “The Forum of Young Global Leaders”, brings together outstanding leaders, aged 40 years or younger, who have committed to devote their knowledge and energy over the next five years to collectively work towards a better future.

The Selection Committee, chaired by Queen Rania Al Abdullah of the Hashemite Kingdom of Jordan, has chosen the candidates after carefully screening the profiles of thousands of young leaders from every region of the world and from a myriad of disciplines and sectors.

Reflecting the diversity of stakeholders, the Young Global Leaders nominated in 2012 comprise political leaders, ministers and parliamentarians. The nominees from the business sector mostly included chief executive officers and successful entrepreneurs. The other stakeholders consist of intellectual leaders, societal leaders, active opinion leaders and cultural leaders. Asanga is presently the Executive Director of the Lakshman Kadirgamar Institute for International Relations and Strategic Studies (LKIIRSS), the premier national think tank of Sri Lanka.

He was the Chairman of the Fishery Harbours Corporation from 2005-2010 and Chairman of the Sri Lanka Foreign Employment Agency from 2010-2011. Prior to working in the government sector, he was in the telecommunications sector. Asanga has an MBA and B.Sc. from Australia, Executive Education from Harvard, and he is a Golden Key International Scholar for his outstanding academic excellence.


List of 2012 Young Global Leaders Honourees