Mount Lavinia in The Maldives

By Duruthu Edirimuni

The Mount Lavinia Hotel Group has joined its peers Aitken Spence and John Keells Hotels in venturing into the Maldives to try and balance the country risk.

“We have applied for exchange control approval together with other relevant documents to take the lease of an island for 10 years,” Sanath Ukwatte, Chairman and Managing Director, Mount Lavinia told The Sunday Times FT.

Aitken Spence announced this week that it has acquired the Vadhoo Island resort for $13 million.

Ukwatte said his company has identified an island with a hotel of 100 beds. “It is a four star hotel and there is a huge demand for the middle income hotels in the Maldives,” he explained, adding that it will be opened by May 2008.

He added that it is a very high investment but it is an attractive one, because the Maldives is booming.

The Maldives recently called for proposals to develop resorts on four of its islands. Hemas Group and Jetwing Group had evaluated it, but thought the venture expensive, according to industry sources. Aitken Spence and JKH have financially successful resorts there.