Sri Lanka to get US$500mn hotel from China aviation firm

Sat, 18 May 2013 23:56:05

14 Jan, 2011 06:05:01

Jan 14, 2010 (LBO) - A Chinese aviation firm will build a 500 million US dollar hotel and shopping complex in the main beachfront of Sri Lanka's capital Colombo, the government said.

China National Aero Technology Import and Export Corporation (CATIC) will buy land in Colombo's Galle Face area to build a five star hotel and shopping complex.

The proposal by economic development minister Basil Rajapaksa has been approved by the cabinet of minister, the government's information office said.

The project proposal will be on the same lines as an earlier deal with Hong Kong based Shangri-La leisure group to build a 500 million dollar hotel and shopping complex, the government said.

Shangri-La will get state land on which a military sports ground was located.

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19. meerkat21 Mar 28

Abe -A Government cannot sell ' Crown' land- can only long leases. But most Sri Lankans think that 99 year lease is like Freehold in SRi Lanka due to the fact that in most cases the government 'conveniently forgets' that the land is leased and fails to collect ground rent- wink, wink!

You know, being of pious and of religious nature Sri Lankans are the most honest and honourable people on earth.

18. Abe Mar 28

Yes, it’s true that we should promote investment in core areas of strategic importance. But, keep in mind the land especially in strategic locations are a scare resources.

We should opt to give long term lease ( ie 99 years) instead of outright sales. That’s what many countries do in promoting investments.

17. meerkat21 Mar 23

I watched a TV programme, some months ago, discussing aspects of tourism in Sri Lanka represented by heads of various bodies including hotel industry and the tourist board. It was clear to anyone watching the programme that:

1. None of them new who or what a tourist is( a person who goes on TOUR for pleasure). By definition this exclude business travellers who usually stay in city hotels and Sri Lankan expats who come in droves during Christmas and New Year- but usually stays at home or with a relative - and not in hotel.

2. The immigration did not know the real number of tourists coming to Sri Lanka because they counted ex- Sri Lankan diaspora who have foreign passports , as tourists.

3. The hotel industry did not know the number of hotels/ guest rooms required- Which is impossible to calculate in a country like Sri Lanka- because thousands of small hotels and guest houses are not registered.

So much for so called experts!

16. meerkat21 Mar 22

Ravi Bala- enterprising people get rich- not necessarily intelligent ones. Most of the brilliant scientists over the last 200 years died poor- Da Vinci being one of them. The Russian mathematician who solved one of the most difficult mathematical problems in the history has repeatedly refused the prize money of one million dollars. The fact is most intelligent people( scientists) do not care much about money. On the hand there are reports that prostitutes who entertain middle eastern billionaires on their yachts earn up to USD 100,000 a day. And you wouldn't want to call them intelligent do you?

IT people intelligent?

15. Duminda Fernando Jan 15

Rohan, Shangri La, I believe will come up with a mixed developent, with hotel, suites, serviced apartments, entertainment, F&B etc. The combined yield will be well in excess of typical yeld on room rental.

When will we get out of our small minded negative thinking and lend support to all the development that is kicking off?

Let's leave petty politics aside for a moment and elevate Mother Lanka to where she belongs.

14. Rohan Samarajiva Jan 15

A blogger says:
"Just a few minutes ago I received a text from Ada Derana, saying the Government has given approval for a 500 room hotel at a cost of US$500M to Shangri La. If you believe that is true, then a room will cost on average US$1M, and a minimum of 15% net return on investment is required. That is US$150K a year, which on 75% occupancy, very high by international standards means 240room nights. That is a clear profit of US$150,000/275 which equals US$540 profit per night on a 500room hotel, something that has yet to be achieved anywhere in the world."

His full discussion is at http://kalpanakaranna.blogspot.com/2010/12/lies-lies-and-bald-faced-lies-says-who.html.

He suggests that there may be more than a hotel here (think Crescat) or the investment figure is overstated.

Any comments?

13. Ravi Bala Jan 15

Meerkat, Intelligence and entreprenuership are the main drivers behind distribution and propogation of wealth - look at China and India. Chaps from poor backgrounds built on their IQ, became (for example) IT specialists, started BPOs, created more employment for others and raced up the wealth scale - legitimately.

Nothing wrong in that. So, to your question, 'who gets rich?' the answer is that intelligent folks will get rich and get ahead of their lazy, negative thinking compatriots.

They will seize the opportunity presented by the end of the war and create economic growth and wealth - basic economics for you. Those who complain and criticise will inevitably be left behind and will slip down into poverty. So each of us need to make the choice now.

12. meerkat21 Jan 15

Who gets rich from tourism? Not the average Joe public on the road for sure. Only a few elite. Average hotel throws out more food in a day than a person can eats in a whole year. Absolute waste when millions go hungry.

Because hotels and exporters pay top dollar for sea food, fish, prawns and lobster are beyond the reach of average family.

Argentina and Brazil are right to ban exports of food items. Japan, Korea, Taiwan and other asian countries developed because of good quality education in science and technology. They have no tourism to speak of. No one speaks of the negative aspects commercial mass scale tourism.

11. Rabok Jan 15

Dear Mr Hiran - This country needs more positive thinking people like you - But unfortunately we have more of unwanted negative thinking people -- who always enjoy pulling the legs or backstabbing positive thinkers --

10. Sense Jan 15

This is all about "some people" collecting massive bribes/commissions to be stashed in safe havens.

9. Navidi SL Jan 15

Hope this will not be a superficial glamour protect but a carefully thought-out design, giving consideration to easy access by public transport, underground crossings, traffic flow, undercover parking, adequately landscape etc with international architectural character i.e. I mean not Chinese pagoda style.

8. thalapathpitiye hemanada Jan 14

Nomads ground is the national arts theater built like a manel mala It is a interest free long term loan and partially a gift arranged during vijitha herath time as a cultural minister (he sold the culture to norwegians but that is different matter)As i understand Gallface green is untouched

7. sneaky Jan 14

The Army grounds and Defence Ministry Complex were formally part of the original Galle Face Green.

Although I am not disputing the merits of the said Investments, it might have been nicer to have a wider expanse of Greenery akin to Central park in NY, Hyde Park in London and the English Garden in Muich thereby making them very Green Cities indeed where many people find solace in an otherwise built up city lifestyle.

6. sunil de silva Jan 14

Mithrapala, the construction on the former Nomads ground is not a "Chinese Monstrosity" as you make it out, but a landmark in the making. It will be the National Centre for Performing Arts and will transform the Green Path - Horton Place junction.

All major cities need landmark theaters with iconic architecture - ever seen the Sydney Opera House? - people called it names but today its a global icon. Let's think big, and make Sri Lanka blossom - let's get out of our 'frog-in-the-well' mindset and move forward with confidence! BTW, Nomads has been relocated to the world class cricket stadium in Hambantota - much nicer and bigger too! Game on!

5. Mitrapala Waduthanthri Jan 14

Sad, if we have to sell such a beautiful piece of land to Chinese in the name of investment promotion and development. This is also a historical place as promenade was initially laid out in 1859 by the British Governor of Ceylon, Sir Henry Ward.

What they should do is to utilize present defense ministry location for development.

We have already lost former nomads grounds to a Chinese donated steel monster.

Development means not indiscriminate selling valuable properties. But have a balance between large open areas, parks, public squares and buildings.

It would be a sad day if we lose Galle Face green to some skyrises. Where would ordinary people go to have fesh air and enjoy with their kids?

4. Harin Gunaratne Jan 14

Just to clarify,
1. This is the land on which the Army sports grounds is situated at present. Facing Galle Face, but NOT Galle Face Green! Quite rightly, the Army HQ is being relocated to Battaramulla along with other Government - excellent city planning initiatives - makes great sense for national security as well since government is now out of SriJPura-Kotte - arm HQ should be in the vicinity. - Inspite fo the skyline changing nature of these two projects, the land has been given at the highest rates known in SL - some Rs7M per perch - excellent value for the country, especially since these will be massive FDIs.

Our country really is on track for a turbo-charged post war recovery - we all need to be a lot more positive do our bit make the dreams of our generation a reality...

3. garawi Jan 14

Tony, My understanding is that NOT the Galle Face green but the current Army HQ and the land supposed to be aquired by filling the sea is used for these two projects! Secondly selling land to foreigners is OK for that is the only way the demand can go up and a chain reaction follow to being industry in and lift the standard of living of the population.

Look at Many other prosperous countries. Anybody can buy land there as long as you are willing to pay the market price. You may not reap the benefit of this development but your kids will in another 15 to 20 years.

2. Tony Jan 14

Aiyo what a shame Again tthey want to sell the beautiful green at the centre of the city to foreigners. What a loss for the people who track for the exercises, what about the villagers who come and enjoy a meal, asing song, what about the lovers who stroll the green. It was a beautiful sight and we are going to miss it. Why cant they buy a land some where else?

1. ih Jan 14

These are real long term property investments. Unlike doing crappy apartments here and there for short term quick buck that destroy long term value. Looking forward to see the changing skyline.