New BOI projects reflect growing importance of tourism sector in economic development of Sri Lanka.

The Board of Investment promotional strategy will focus mainly on 5 areas during the next five years, which include dairies, tourism and leisure, education, IT/BPO and urban infrastructure development. Since the Tourism sector has the potential of becoming a major contributor in the economic development of the country, the government aims at building up this industry so that it may offer a world standard product.

Current trends indicate that there has been a consistent increase in tourist arrivals in the island since the end of the conflict and this trend has led to very optimistic forecasts on the future of tourism in Sri Lanka. The industry could become a US$ 2  billion industry by 2016 from the current level of US$ 400. For that objective to be achieved Sri Lanka needs to attract a total of 2.5 million arrivals from the current level of 500,000.

Significantly, Sri Lanka has received positive reviews in major international tourism publications. National Geographic, for example ranked Sri Lanka as number 2 in its list of 20 Top Destinations. The magazine’s website described Sri Lanka as the ‘resplendent isle’ and underscored the natural charms of the island as “Indeed splendid.” National Geographic website further stated that Sri Lanka has “some of the most exotic and exclusive locations around the world”.

The BOI’s strategy is therefore to bring in investments to develop the current tourism infrastructure by improving the existing hotel capacity or expanding its capacity. The Board of Investment of Sri Lanka therefore granted investment approval to Hotel Services (Ceylon) Limited for an expansion project of Ceylon Continental Hotel and SAJ House Boat Builders & Operators Limited to provide house boat operations in Nuwara Eliya. Mr. Jayamapathi Bandaranayake, Chairman / Director General signed the agreement on behalf of the BOI and formally presented the BOI Certificates of Registration to the investors. 

Hotel Services (Ceylon) PLC signed the agreement with the BOI to carry out the refurbishment project under the BOI. The project is an initial investment of US $ 1 million that will be increased to US $ 6 million. 

The strengths of the Ceylon Continental include its excellent location in the heart of Colombo’s business district and a scenic view on the Indian Ocean. It is primarily a five star business hotel and was the first modern hotel property in Sri Lanka. The Ceylon Continental is a well equipped hotel with shopping complexes, restaurants, conference rooms, business centre, a fully equipped Gym, Swimming Pool, and host of other recreational facilities to provide the guests making it the ideal base for both business and leisure travellers.

Another novel project under the BOI was SAJ House Boat Builders & Operators who signed an agreement to provide houseboat services in Nuwara Eliya. The project is an initial investment of Rs. 55 million that will be increased to Rs. 100 million. 

 “The tourism market is looking at Sri Lanka as the most promising tourism destination in Asia. To utilize the full potential of Sri Lanka as a tourist destination, it is necessary to identify, develop and promote new and innovative tourism products” stated Mr. Jaison Panikulangara, Director of SAJ House Boat Builders & Operators. As a result House Boat Builders and Operators, a pioneering enterprise in India will be introducing house boat operations, which is a successful tourism product in the state of Kerala, India. Houseboat operations would be a successful tourist attraction in the inland water bodies including rivers, lakes and lagoons of Sri Lanka.

The houseboats, which the company will introduce, are 100 feet in length, with a width of around 20 feet and the middle has a height of 16 feet. The boats are made of wood with inboard engines. The modern type houseboats have all the comforts of a 4-5 star Hotel that include well-furnished bedrooms, comfortable living rooms, dining area and an upper deck providing seating facilities for 100.

The project is an environmentally friendly one where waste is collected in the boat and not released in the Nuwara Eliya Lake. The boats will be produced in India, but assembled in Sri Lanka. A 24-room resort in Nuwara Eliya that will provide all the facilities needed by tourists, will support the houseboats.