Financial Times

The upmarket Lighthouse Hotel and Spa plans to recreate a Sri Lankan village experience with unique and luxurious living standards in a bid to boost their bottom-line.

The company saw its profits fall by Rs 25 million last year, mainly due to the tsunami, while still posting a profit of Rs 64 million against Rs 89 million in 2004.
"We are planning to develop the land beside the river, in Kappu Ella, Galle, which should be up-and running by the end of December. It will include two luxury chalets including plunge pools, a restaurant pavilion and a lounge pavilion," Hiran Cooray, Managing Director of Lighthouse Hotel told The Sunday Times FT, adding that the investment for this expansion would be approximately Rs 10 million.

He said potential competition in the future would enter a new concept stage due to many hotels in the tourism industry looking to overcome the effects of tsunami, with a new approach that would "focus on marketing the destination".

The company took over the full management of the hotel and spa, previously managed by Serena Spa (Pvt) Ltd, in January along with its homeopathy treatment facilities which are to be upgraded in order to maintain the quality of its product from emerging competition in the area.

Commenting on the future Tourism Act, Mr. Cooray believed activities to be undertaken would require high private sector involvement, along with government authorities to ensure the industry moved forward.

Meanwhile, the company’s Board of Directors recommended a final tax-free dividend of 8 percent, plus a tax-free interim dividend of 5 percent for shareholders.