Thread: Opinion: Sri Lanka holds tight to China

Opinion: Sri Lanka holds tight to China
http://www.globalpost.com/dispatch/w...ka-tamil-china


Two white tigers seen in the Zoological Gardens in the Sri Lankan capital Colombo suburb of Dehiwela on March 2, 2010. The Chinese government presented them to the zoo signifying the Sri Lanka-China friendship. (Ishara S. Kodikara/AFP/Getty Images)

LOS ANGELES — When the voters of war-torn Sri Lanka cast their ballots in last January’s presidential election, little did they realize that the winner, incumbent Mahinda Rajapaksa, would take such an expansive view of his victory.

Eight months into his second term, Rajapaksa is engaged in an unprecedented power grab that is marginalizing religious and ethnic groups and endangering the island’s fragile democracy. Earlier this month, the country’s parliament abolished presidential term limits, effectively creating an imperial presidency.

No doubt Rajapaksa figures he deserves some spoils for being the leader who finally liquidated the Liberation Tigers of Tamil Eelam (LTTE) after a 26-year civil war. But he has given himself the portfolios of defense, finance and planning, ports, aviation and highways, and he has appointed one brother economic development minister and another defense secretary. Add a third brother as Speaker of Parliament, a cousin as deputy minister of water and drainage, and a son in the family’s seat in parliament — and it’s clear this is dynasty-building run amok.

People around the world greeted the end of Sri Lanka’s war with relief. But it is time for Western governments and businesses to recognize the rising threat to freedom and use whatever leverage they have to stop Rajapaksa’s divisive and anti-democratic policies, which are dovetailing with island’s ever tighter embrace of China.

Dynastic politics is nothing new in South Asia, but the creation of this family juggernaut is particularly troubling. It comes after Rajapaksa and the Sri Lankan military achieved a decisive — and needlessly bloody — end to Sri Lanka’s long war, killing as many as 40,000 people in the final weeks of fighting. Most were unarmed Tamil civilians.


In the wake of that campaign, Rajapaksa called an early election and coasted to an easy win, pledging to heal the wounds and divisions that left the country so devastated for so long. Tamils were skeptical, but hopeful.

Two weeks after his re-election, Rajapaksa’s government arrested his defeated presidential opponent, who remains in custody on politically motivated charges. As part of a broad campaign to silence opponents, independent organizations report that press intimidation and human rights violations remain rampant.

Instead of embracing democracy, Rajapaksa and his supporters in parliament — where brother Chamal, as Speaker, sets the agenda — have launched a frontal assault on the constitution. In addition to abolishing term limits, other changes have ended independent oversight of appointments to the country’s Supreme Court, human rights and electoral commissions — moves that vastly expand presidential powers and leave them unchecked by other branches of government.

The problems with these changes are numerous: Election promises to decentralize authority and grant more autonomy to Tamil areas in the north and east have been tossed out the window. Vital development aid is being poured into building beach resorts for foreigners and new military bases, while Tamil communities destroyed by warfare go without vitally needed new housing, hospitals, schools and churches. Tens of thousands of Tamils are still detained in camps, unable to return to their homes, while the government conducts a campaign to colonize Tamil areas with Sinhalese families, many with ties to the military. Tamil communities, and indeed the entire culture, are threatened with annihilation.

With Rajapaksa himself acting as Defense Minister and his brother Gotabaya serving as Defense Secretary, no one can challenge the use of Sinhalese Army troops to police Tamil majority regions of the island. But the continued military deployment is exacerbating ethnic tensions that originally sparked the civil war, and reports of harassment, plunder, and rape are multiplying. This will only get worse absent a legitimate peace and reconciliation process.

Truth and accountability are critical elements of reconciliation, but when UN Secretary General Ban Ki-moon created a three person panel of experts to look at war deaths in Sri Lanka, Rajapaksa’s own housing minister rallied hundreds of protestors outside the UN’s headquarters in Colombo, forcing the offices to be closed and the resident U.N. coordinator to be recalled to New York.

Rather than accept an independent probe, Rajapaksa formed his own “Lessons Learnt and Reconciliation Commission,” which most outside observers consider is no more likely to uncover the truth about war crimes in Sri Lanka than the nine other government commissions that preceded it, none of which held anyone accountable.

The international community is not blind to what’s happening in Sri Lanka, but democratic friends seem impotent as Rajapaksa ignores critics in the West and deepens ties with China. While China may be unfazed by the island’s march toward autocratic rule, Sri Lankans should consider what a future with such limited friendships would look like. And the West should consider how many more borderline democracies it can afford to watch fall.

Karunyan Arulantham is a member of the Tamil American Peace Initiative, a group of Tamil Americans formed to help bring lasting peace and justice to Sri Lanka, as well as to focus attention on the destruction of Tamil communities and culture caused by the war.

Sri Lanka economy receives IMF boost
http://newsystocks.com/news/3711236

COLOMBO, Sep. 25, 2010 (Xinhua News Agency) -- International Monetary Fund (IMF) decision to grant a further tranche of the 2.6 billion U.S. dollar standby facility was a further endorsement of the island's economic stability, the Sri Lankan government said here Saturday.

"The IMF decision was a further reflection of the international confidence in our economic stability," Sarath Amunugama, deputy minister of Finance told reporters.

The IMF on Thursday said the fifth tranche of 210 million dollars would be released to the island on Monday as part of its standby facility to boost Sri Lanka's reserves.

Almost a half of the facility has now been made available.

The IMF facility was mainly instrumental in the island's foreign reserves reaching 5.8 billion dollars by the end of August.

Amunugama said the latest tranche would further enhance the reserves.

Sri Lanka is enjoying an economic revival since the island ended its 30 year separatist conflict with Tamil Tiger rebels over an year ago.

Sri Lanka gets more IMF cash, suggests new monetary framework
http://www.lankabusinessonline.com/f...?nid=775595659

Sept 25, 2010 (LBO) - The International Monetary Fund has released 212.5 million US dollars to Sri Lanka under its 2.5 billion US dollar program, backed reform proposals and suggested that the central bank move away from its quantity targeting monetary framework.
"Further improvements in monetary policy formulation will provide useful support for macroeconomic stability," Murilo Portugal, deputy managing director and acting chair, said in a statement.
Consumer inflation in Sri Lanka's capital Colombo was up 5.0 percent in August, from an year earlier. Given the central bank's historical record of double digit inflation, such a number is not considered bad in Sri Lanka.

Peg and base money targets

Sri Lanka maintains a tight peg with the US dollar, but trying to maintain a peg and have independent monetary policy (print money) has resulted in high inflation and balance of payments troubles for the country since shortly after the creation of the central bank in 1950.

Since 2007 Sri Lanka has maintained a quantity targeting framework to bring down inflation which hit 29.9 percent in April 2008, after which a controversial new inflation index was also introduced.

Liquidity shortages during a balance of payments crisis later in the contracted reserve money beyond targets. Credit contracted both in Sri Lanka and in the US to whose currency the rupee is pegged. Inflation plummetted.

At the time the Central Bank used quantity targets for reserve money (the narrowest form of money through which all final transactions in an economy are cleared) as the key operating target rather than interest rates, with inflation as a final or rather 'indirect' target.

But to directly target inflation with just policy rates Sri Lanka has to abandon both intervening in forex markets and intervening in the primary treasury bill markets.
Such interventions generate liquidity outside open market operations and undermine the overnight policy rates mechanism.

Sustained T-bill purchases will eventually create higher inflation than the anchor US currency, whose inflation serves as a floor under an exchange rate peg.

Rate Targeting

In 2010 there was less emphasis on quantity targets and more reliance on rates. Reserve money targets have been relaxed from the original already in 2010 under revised IMF agreements.

"The central bank is now in a position to move gradually toward a flexible framework that targets inflation more directly," Portugal said.

"The recent introduction of more exchange rate flexibility will support such a transition while also helping to maintain competitiveness."

Concerns have been raised by exporters about the increasing overvaluation of Sri Lanka's rupee against competitors. By June 2010 the rupees was 25 percent 'overvalued' as measured by the real effective exchange rate index.

Despite higher-than-US inflation, Sri Lanka has also pushed the exchange rate up. It can be easily done because with a 7.5 percent floor on interest rates, which is substantially higher than the US liquidity allows liquidity to be drained easily, before or after creating inflation.

With the release of the latest tranche of cash, the IMF said the total given to Sri Lanka under its 2.6 billion US dollar program would increase to 1,274 million US dollars.

But Sri Lanka now has 5.7 billion US dollars in foreign reserve, far above a base money of around 3.0 billion US dollars and foreign reserves are no longer a problem.

But local analysts, rating agencies, foreign lenders and investors look to the IMF program to minimize state excesses and keep the economy stable.

Balancing a runaway budgeting, which is the key trigger of high inflation and balance of payments troubles remains a key to the program.

"Fundamental tax reform, including reform of the investment promotion regime, is central to achieving the government’s budget deficit reduction targets while creating the fiscal space for much-needed reconstruction and infrastructure investment, as well as social spending," Portugal said.

"In this regard, the 2011 budget will be key to demonstrate the government’s continued commitment to the program’s goals."

Growth Facility

The so-called 'stand by' (emergency) program which was initially started to boost foreign reserves which fell to 1.2 billion US dollars has now take a more reform oriented 'poverty reduction and growth facility' type of track with authorities keen on reforms.

"Overall economic conditions are improving, and the economy is likely to show strong growth this year on the back of improved fundamentals and political stability," Portugal said.

"Sustaining high, socially inclusive growth will require substantially higher levels of private investment, underpinned by broad-based structural and financial sector reforms."

The central bank has upgraded Sri Lanka's growth this year to between 7.5 to 8.0 percent, one of the highest in the world.

"Overall economic conditions are improving, and the economy is likely to show strong growth this year on the back of improved fundamentals and political stability," Portugal said.

"Sustaining high, socially inclusive growth will require substantially higher levels of private investment, underpinned by broad-based structural and financial sector reforms.

"The current favorable environment allows the authorities to focus on addressing the many challenges that remain, particularly in the fiscal and financial sectors.

"Policies will be geared toward preserving macroeconomic stability, ensuring external competitiveness, facilitating capital market development, and improving the investment climate."

* Sri Lanka's state revenue from tobacco gone up
http://www.colombopage.com/archive_1...85518174KA.php

Sept 26, Colombo: Sri Lanka Ministry of Finance has announced an increase of income from tobacco levy this year.

In the first five months of this year, the state revenue from tobacco tax was Rs. 15.663 million. It is an increase of 17% compared to the same period last year.

Sri Lanka has thoroughly restricted publicity of tobacco products. TV channels screen any scene that displays smoking.

The government attributes the increase of revenue to the increase of tax collection from the previously rebel-held areas. Sales have increased in these areas. Previously, only the rebels collected taxes from these areas.

Sri Lanka gets more attention from India's Taj hotels
http://www.lankabusinessonline.com/f...?nid=930655286
Sept 24, 2010 (LBO) - India's Taj group is looking for opportunities in Sri Lanka's war-torn eastern coast and a city hotel it controls will also need 30 to 35 million US dollars to be upgraded to fit the group's new brand portfolio, officials said.
The listed Taj Samudra hotel in Sri Lanka's capital Colombo has 300 rooms.
"It will take 30 to 35 million US dollars to re-do this property," executive director finance of Taj Resorts and Hotels, Anil Goel said.

The group is now evaluating the property to decide where to place it on the group's new portfolio of brands, he said.

Listed Taj Samudra is majority controlled by the Taj group.

Taj also owns a 50 percent stake in Taj Exotica, a 160 room resort in Sri Lanka's South West coast, which has been re-branded as 'Taj Vivanta Bentota' from this week.

It also manages a 130-room hotel near Sri Lanka's only international airport. The Taj Airport Garden hotel, owned by Sri Lanka's Hirdramani group will be put under 'The Gateway Hotel' brand from January 2011.

Its owners are upgrading 40 rooms and building 100 new rooms to increase capacity.

Taj is now evaluating the Colombo property to decide which brand to place it under.

Chief executive Raymond Bickson said the group has been scouting opportunities in the war-torn eastern province of Sri Lanka which has long undeveloped stretches of beach.

Goel said all three properties in Sri Lanka have seen a "dramatic turnaround" in the past few months which had made the group more confident about investing in Sri Lanka.

He said room rates have moved up from around 60 US dollars a day to near 100 dollars and is trending up, unlike during the war years. Occupancy was up.

"Unfortunately we could not command the rates (during the war years)," Goel said.

"There is no correlation between investment vis-a-vis the return from the market."

India itself sends more tourists to Sri Lanka than any other country. Up to August 2010, arrivals were up 46 percent to 397,000. Indian visitors were up 63 percent to 73,400.

Sri Lanka to strike an LNG deal with Qatar
http://www.asiantribune.com/news/201...lng-deal-qatar


President Mahinda Rajapaksa meets Sheikh Hamad bin Khalifa Al-Thani Emir of the State of Qatar.

Colombo, 22 September, (Asiantribune.com):
President Mahinda Rajapaksa during his meeting with Head of State of Qatar Kalifa Altani, has discussed the possibility of commencing a Liquefied Natural Gas (LNG) power project in Sri Lanka, in a bid to make the island nation an energy hub.

The head of state of Qatar has agreed to extend his fullest support to commence an LNG project of Qatar in Sri Lanka a press statement issued today (September 21) reported.

“The government of the state of Qatar has expressed fullest support to the development programme carried out by the President Mahinda Rajapakse following dawn of peace in the country,” said the statement.

“Emir of Qatar Kalifa Altani expressed his appreciation to President Rajapakse, who is currently in New York city to attend the 65th general session of the United Nations. The meeting between the two head of states took place at dawn today (September 21). The Emir extended his congratulations to the President for ending long standing terrorism in Sir Lanka and added that the President has set an example to the entire world. The head of state of Qatar has agreed to extend fullest support to commence L.N.G. Gas project of Qatar in Sri Lanka,”

Sheikh Hamad bin Khalifa Al Thani led the development of Qatar's oil and natural gas resources.

LNG is natural gas (predominantly methane – CH4) that has been converted into liquid form for ease of storage and transport, as it takes up only about 1/600th the volume of natural gas in its gaseous state. The most difficult and costliest operation in an LNG process is the liquidation process before storage or transportation and re-gasification at the end-point.

Qatar- the best country

Speaking to the Asian Tribune, Secretary to the Ministry of Power and Energy, M M C Ferdinando said that an Inter-ministerial Committee on Energy had been discussing the viability of LNG, and agreed that Qatar was the best country to partner when it came to LNG.


“I am not aware of this matter (President Rajapaksa’s meeting with Emir of Qatar). However there was a proposal that Sri Lanka must explore the viability of LNG and it was pointed out that Qatar was the best country when it came to LNG. Two months back a group (of officials) was entrusted to study its potential and report back. I assume that President Rajapaksa discussed this matter in that context,” Ferdinando said.

High-level Committee on LNG

Earlier Asian Tribune on September 4, 2010, reported exclusively that the Sri Lankan government in a bid to exploit eco-friendly fuels and to ensure energy security set up a high-level Committee on LNG.

“The committee is represented by officials of Treasury, Ministries of Power and Energy and Petroleum Resources and Petroleum Resources Development, Ceylon Electricity Board (CEB), Ceylon Petroleum Corporation (CPC), and Westcoast Power (Pvt) Ltd, who were entrusted with the task of exploring possibilities of using LNG and report back,” a high-ranking Petroleum Resources and Petroleum Resources Development Ministry official told the Asian Tribune.

He added that the government had identified the potential of LNG and understood that it was very beneficial in the long term. The LNG Committee is to conduct a presentation on its findings to the government in the very near future.

LNG plant in Kerawalapitiya stalled

Though the government accepted a proposal from a private party to set up a 1,000 Mega Watt Rs. 678mn (US $ 600mn) LNG power plant in Kerwalapitiya, so far it had failed to kick-off construction due to struggles with its Australia-based lead developer.

However, energy experts have long debated the long-term viability of LNG in the country.

“LNG trades are done on long-term contracts which may run over 20 or 25 years. So, it’s imperative that you ascertain its commercial viability first. Also, constructing a re-gasification facility for LNG costs nearly US$ 100, so how long the company is willing to wait in order to recover its capital and how far can the customer bear to pay for a unit of electricity generated, have to be considered,” an energy expert said on grounds of anonymity.
Viability of LNG questioned

Three separate studies by USAID in 2002, the World Bank, in 2004, and Japan International Cooperation Agency (JICA) in 2006 found that LNG was “not an economical source for power generation for Sri Lanka”, which was reportedly confirmed by independent research conducted by CEB.

More than any other factor, the construction of an LNG plant is said to be very expensive costing a staggering Rs 166.5 bn or US$ 1.5 bn for every one mmtpa (million metric tons per annum) capacity of the plant with the receiving terminal costing another Rs. 111bn or US $ 1 bn per every 1 billion cubic feet per day (bcf/day) throughput capacity.

LNG highly beneficial

However in another exclusive story that appeared on Asian Tribune on September 15, a local agent of a UAE-based investor consortium contemplating to start an LNG project in Sri Lanka, was quoted to have stated that LNG would “be highly beneficial to an emerging nation like Sri Lanka, which anticipates in becoming a mega global hub in energy”

“LNG is one of the cleanest, safest, and most useful of all energy sources. If you take United Kingdom they are using LNG in a major way both for domestic as well as industrial purposes. We have been studying about the scope in Sri Lanka for the last four to five years and were waiting for just the right time,” said the 25-year old Sri Lankan agent of the consortium, who had been right throughout educated in United Kingdom but has now returned to his motherland to serve her.

“We have already conducted the pre-feasibility study and the results are very positive. From hotels to homes, from garment factories to power plants, lot of businesses will benefit. When you use LNG you don’t have to convert it to electricity but use it directly… for example for cooking and air conditioning,” he said.

Qatar- World’s largest LNG producer

Meanwhile gulf news reports stated that Qatar is set to achieve a milestone of 77mn tonnes annual liquefied natural gas production capacity and take a vantage position in the global energy stage as the world’s largest LNG producer and transhipper.

"With the imminent completion of two super trains (7.8mn tonnes capacity each) at Qatargas, Qatar will have an installed LNG capacity of 77mn tonnes per year (tpy).

Qatar’s two LNG producers – Qatargas and RasGas – currently operate liquefied natural gas facilities with a combined production capacity in excess of 55mn tonnes per year (tpy). At the peak of production, some 14 LNG trains will be in operation; seven each at Qatargas and RasGas,"

"The liquefied natural gas sector has become a key driver of the national economy. According to QNB Capital, the oil and gas sector is expected to account for QR145.5bn of Qatar’s total GDP of QR291.1bn in 2010. Of this, the share of the gas sector is expected to be QR81.3bn compared with QR64.2bn from the oil sector."

- Asian Tribune -

OIL..OIL..OIL..
Oil drilling in Sri Lanka amidst imminent sale of Cairn India
http://www.sundaytimes.lk/100905/Bus...imes/bt05.html

Cairn Sri Lanka (Pvt) Ltd (CSLL), a subsidiary of Cairn India which is owned by UK-based Cairn Energy Plc is going ahead with the drilling of the first test well in Mannar basin next year amidst reports on the sale of a majority stake in Cairn India to Vedanta Resources, a senior official said.

Even if the deal comes through Cairn India will continue to exist as an independent company and operate the oil fields and only its corporate ownership is changing, he said. “Cairn Sri Lanka (Pvt) Ltd’s oil exploration in Sri Lanka will not be affected,” said Neil de Silva, head of Sri Lanka's Petroleum Resources Development Secretariat overseeing exploration efforts.

He revealed that the 3D seismic survey started in December has been completed. The gathering of meteorological data and monitoring ocean currents are now underway ahead of a test drilling programme, he said.

Dulip Jayawardane, a retired UN Economic Affairs Officer who has closely following the oil exploration process, expressed his doubt about the continuation of the oil exploration by CSLL a subsidiary of Cairn India as its parent company Cairn Energy Plc plans to dispose of its shares to a company called Vedanta Resources from Mumbai which has a bad reputation of environmental management and human rights abuses in Orissa. If Vedanta takes control of Cairn India as a majority shareholder then it will leave Cairn Sri Lanka out of the picture.

But Mr de Silva said that the Indian government has not endorsed the deal and therefore the Sri Lankan oil exploration activities will not be affected, adding that even with the changing of the ownership of the parent company, the activities of its subsidiaries will continue without any hindrance. Meanwhile The Economic Times reported this week that state-owned Oil and Natural Gas Corp (ONGC) has over a month to decide if it chooses to exercise its pre-emption or right of first refusal to a block sale of a majority stake in Cairn India to Vedanta Resources. Vedanta is paying $8.48 billion to buy Edinburgh-based Cairn Energy's 40 to 51 % stake in Cairn India, which has 10 oil assets in the country including the giant Rajasthan oilfield.

Cairn Sri Lanka is to drill three test wells before October 1, 2011 according to the schedule. The firm has completed three-dimensional (3D) seismic surveys of its exploration block in the Gulf of Mannar and is now processing the data to identify drilling locations. The company is exploring for oil in a 3,000 sq km block in deep water ranging from 400 metres in the east to about 1,900m towards the west. The total estimated cost of the oil exploration project would be the region of Rs. 18 billion.

Intriguing Ulagalla
http://www.dailymirror.lk/print/inde...cal/22016.html



The sight that greets you when you drive in through the giant wooden doors with the smiling gatekeepers bidding each guest 'Ayubowan' is a treat to behold.

The five-hour journey to get there is soon forgotten under the shade of the big trees, the constant ringing of a series of bells and the magnificent sight of a renovated old bungalow.

With the tourism industry now venturing into new and un-trodden paths, the Ulagalla Resort, the first hotel to be commissioned in post-war Sri Lanka, portrays a mixture of everything fresh and innovative.

It offers many experiences on 58 acres of unrestricted land and combines features of eco-tourism, agro-tourism and even leisure tourism. An investment of Rs. 700 million has been made for the project.

The story of the house

The upmarket boutique hotel with its picturesque view was previously an abode for many chieftains in the area. Passed on from father to son, the history of the old building is traced to the colonial era and has been refurbished to keep the past alive, with intricate details blending the old Sri Lankan motifs with subtle, modern architecture.

It is said that the old bungalow housed chieftains whose area of rule ran from Ulagalla in Rajarata to Padaviya in the Northern Province. The whole jurisdiction was called Ulagalla Korale. The mansion had been a sprawling structure with court houses and other outbuildings in addition to quarters for house workers and staff.

Over time, the older mansion became inadequate for the Chieftain's requirements and so the present building was planned and constructed in 1885. Regrettably, the older mansion was torn down to build a new and current version of the mansion. Construction materials and workmanship were supplied by the people in the village and legend has it that the lime was transported by cart from Matale to Ulagalla.

When the house came into the hands of the International Construction Consortium (ICC), part of Finco Group, nothing was changed. General Manger Marketing of Ulagalla Resort Ranjaka De Mel stated that no changes were made to the original structure of the building; however, the rooms in the two levels had been removed to create a larger dining area and other such amenities.

Walking into the old bungalow, you are greeted by the sight of ancient art in dull colours hanging side by side. Miniature lamps of every size hang in one line while the sounds of chiming bells from outside linger in the air. A side wall portrays pictures of a bygone era including the old bungalow when it was still the 'Maha Gedara' of the headman.

One part of the floor, just beyond the current bar area, is covered by glass, giving it a pond effect and sweet smelling jasmines lie sprawled on it, almost as if decorated for the homecoming of a new bride. Old wooden divans, large comfy cushions and dim lighting set the pace for what could be described as a trip back in time.

Going green

Sticking to its move of keeping the original outlook unchanged, the 25 luxury chalets are scattered over an unrestricted area, at one with the wild, with most overlooking the reservoir while others overlook the resort's flourishing paddy fields. However, what is important is that not even a single tree was felled during the erection of the building.

"While selecting areas to put up chalets, areas that were without trees and a minimum amount of shrub were selected. No trees were cut down during the period of construction," De Mel asserted. The eco concept, however, does not end here - in fact it is just the beginning.

De Mel went on to say that the walls of each chalet were fitted with planks of recycled timber mixed with paddy straw to retain coolness.

"They are called 'dura' panels and are made by compressing the paddy straw and husks, etc., in tight pressure. We make it at our factory in Polonnaruwa," he explained.

Dura is a fireproof material which also reduces the transmission of sound, is 100 per cent recyclable and 10 times stronger than dry wall.

The most important contributing factor at the Ulagalla Resort's eco-friendly policy is the solar farm and the rain water harvesting for conservation of water. The solar farm at Ulagalla is the largest solar farm in Sri Lanka and supplies over 50 per cent of the hotel's energy requirement when in full operation.

The farm produces 200 MWh per annum approximately and generates 530 kWh per day on average throughout the year. The system also saves approximately 375 kilograms of carbon emission per day while saving the crude oil equivalent of 133 litres per day. The excess power is added to the national grid.

Commenting on rain water harvesting, Resident Manger Lalin De Mel stated that it made financial and ecological sense not to waste a natural resource, whether available in abundance or not. "The average rain fall in a year is estimated to be 1288.05mm/year. From the system, the total clean water stored per year is 1200m3. Since the average water consumption per person is said to be 180 litres per day, according to our calculations, 18 persons can use the harvested rain water on a daily basis," De Mel said.

Agro tourism

Adding yet another twist to the whole experience, the resort also has its own cultivation farm. This has enabled it to be 100 per cent self sufficient. It even has its own organic green house, which houses many kinds of vegetables, fruits and green leaves. From ladies fingers to brinjals and tomatoes to spring onions, chillie and spinach, the little plot of land is a vegetarian's paradise.

Nimal Dharmasiri, the farmer and the keeper of this garden, speaking to Daily FT stated that his day starts at 6:30 a.m. "We work on two shifts - one from 6:30 a.m. to 4 p.m. and the other from mid afternoon to 7:30 p.m," Dharmasiri stated.

"The resort has provided employment to many of us in the area. I live one km away from the premises and since farming comes in our genes, a little extra help in education has made us close to maestros in the field."

Every morning the Chief Cook pays a visit to this quarter acre of land to see how he can design his menu for the day. When special requirements are made, the farmers plant accordingly. "We use some of the best fertilisers so our crops turn out very well," Dharmasiri said.

Another sight that cannot be ignored is that of the acres and acres of paddy land that stretch across like a winding brown ribbon. These paddy fields produce enough and more paddy needed for the hotel.

Driving down, one sees a large number of cattle grazing in nearby green fields, which De Mel says are cattle saved from slaughter. A windmill spins solitarily further up, aiding in the production of mineral water.

Leisure tourism

For those who love adventure and sports, the quiet beauty of Ulagalla Resort offers much more than a nature hike. There is much to explore and that could be done either on the two mountain bikes that lay waiting for a good ride right outside the chalet or on horseback, just like the old times.

Three sleek and beautiful horses are part of the precious property at the resort. And if it's a deep yearning calling out for a good horseback ride and not practice, there are two guides who will accompany the guests.

If it is water you want, kayaking is offered, though the best season falls in July. Right now the drought has dried out all that is left of the lake. An archery station is also on offer and so are indoor games such as billiards and carom.

A resident naturalist will guide those who love the outdoors through the many flora and fauna on offer and if lucky, one could even spot a few elephants from the observation deck erected in the middle of what could be described as nowhere - given that the resort lies between the Ulagalla Lake and the Ritigala mountains.

Other amenities

Each luxurious chalet has a private plunge pool, which is one of the best places to stargaze at night. Away from the busy night life of Colombo with thousands of street lights, the resort will surely soon become a favourite spot for stargazers. A 30 meter swimming pool glistening blue in the morning light which turns into a sparkling magic board at night is also present in close proximity to the main walawwa.

The chalet itself is an experience in itself. The best chalet of course is Chalet Number 18, which combines a master bedroom in a separate yet connected building. It has a larger plunge pool and even a rain shower. All chalets are tastefully decorated with private terraces with lie lows.

A well-furnished fitness centre, business centre and incredible spa experience is all ready to welcome the guests.

Gourmet signature dishes embracing international influences including Western, European, Mediterranean and Sri Lankan delights will take you on a gastronomic trip. The plus point is that there are no set meal times and everything is served to the whims and fancies of one's biological clock. It is well described as an epicurean experience of refinement.

In the pipeline

ICC has invested Rs. 700 million in the Ulagalla Resort, De Mel said. However, this is just the first of three lifestyle boutique hotels, with the other two to be completed in Trincomalee and Kalpitiya.

"Sri Lanka is bound to take off to accelerated development level in no time. Since tourism has already been recognised as a sunrise sector and many industrialists have reaped benefits, we are certain that investing in this field is a wise decision. More projects will come up in due course," De Mel added.

Sri Lanka Exchange Rate:
http://fx-rate.net/LKR/

Originally Posted by yunowu

Sri Lanka gets more attention from India's Taj hotels
http://www.lankabusinessonline.com/f...?nid=930655286
Sept 24, 2010 (LBO) - India's Taj group is looking for opportunities in Sri Lanka's war-torn eastern coast and a city hotel it controls will also need 30 to 35 million US dollars to be upgraded to fit the group's new brand portfolio, officials said.
The listed Taj Samudra hotel in Sri Lanka's capital Colombo has 300 rooms.
"It will take 30 to 35 million US dollars to re-do this property," executive director finance of Taj Resorts and Hotels, Anil Goel said.

The group is now evaluating the property to decide where to place it on the group's new portfolio of brands, he said.

Listed Taj Samudra is majority controlled by the Taj group.

Taj also owns a 50 percent stake in Taj Exotica, a 160 room resort in Sri Lanka's South West coast, which has been re-branded as 'Taj Vivanta Bentota' from this week.

It also manages a 130-room hotel near Sri Lanka's only international airport. The Taj Airport Garden hotel, owned by Sri Lanka's Hirdramani group will be put under 'The Gateway Hotel' brand from January 2011.

Its owners are upgrading 40 rooms and building 100 new rooms to increase capacity.

Taj is now evaluating the Colombo property to decide which brand to place it under.

Chief executive Raymond Bickson said the group has been scouting opportunities in the war-torn eastern province of Sri Lanka which has long undeveloped stretches of beach.

Goel said all three properties in Sri Lanka have seen a "dramatic turnaround" in the past few months which had made the group more confident about investing in Sri Lanka.

He said room rates have moved up from around 60 US dollars a day to near 100 dollars and is trending up, unlike during the war years. Occupancy was up.

"Unfortunately we could not command the rates (during the war years)," Goel said.

"There is no correlation between investment vis-a-vis the return from the market."

India itself sends more tourists to Sri Lanka than any other country. Up to August 2010, arrivals were up 46 percent to 397,000. Indian visitors were up 63 percent to 73,400.

Most indian top hotels pay attention to sri lankan after the war