First FDI tourism project in SL’s east coast launched

By Sarah Thadhani
Pura Resorts Canada with Ideal Developments Canada this week announced the very first foreign direct investment (FDI) tourism project in Sri Lanka’s east coast, Pura Luxury Villas Resorts.
It will feature incredibly luxurious chalets and villas on the east coast of the island along the pristine shores of Nilaveli beach, Trincomalee.

Ideal Developments, a Toronto-based firm, founded and led by Sri Lankan businessman Shaji Nada, is a multi-faceted company that develops residential and commercial real estate, which boasts an impressive portfolio of upscale custom luxury homes.

Taking advantage of the boom in the tourism industry as well as the change in the political and economic landscape in the north, Pure Resorts Inc. Managing Director/Ideal Group Cooperate Affairs Director Sri Nithya Omkarananda said that it was the right time to enter the market after two years of setting their eyes on Nilaveli. 

This US $ 50 million project will be constructed on a 26-acre plot of land right on the beachfront, which will consist of 50 resort chalets and 62 luxury island homes, which will only be available for sale. 
“Our entire concept is built around having five-star resorts and vacation resorts in destinations that have untouched beauty - raw virgin surrounds - basically offering nature, paradise and luxury,” Omkarananda commented. 

The ideas behind the architecture of this project is to blur the line between indoor and outdoor space, which will consist of creative conceptual designs of expansive gardens, lush greenery and modernized but simple living space with light filled interior. 

Taking into consideration of its surroundings and nature, over 80 percent of the area’s trees and plants are to be retained and intact to create a complimenting jungle milieu and coastal canvas to the contemporary, seamless architecture done by renowned architect, Philip Weeraratna. 

The property will consist of large open spaces, an infinity pool, different restaurants along with the villas private pools, running tracks and ample parking. 

The importance of FDIs to Sri Lanka can’t be overstated as they bring about reductions in the budget deficit, add to economic growth and improves the country’s balance of payments. This project is expected to create 300 jobs and will commence construction in April. It is estimated to take two years and therefore will be completed by April 2020. Ranging upwards from Rs.105 million for its villas, this project is expected to create over 300 jobs. While it targets high-end travellers, the villas that are to be sold locally is expected to be around 15 percent while the rest of its lavish island homes are actually focused on expats. 

The goal is to provide the investor with a second home. Why investor? Omkarananda explained that the properties are included into the resort rental pool when unoccupied by the owner, generating revenue. Henceforth, you don’t just own a fully-furnished extravagant beach house but when you’re away, you’re earning an estimate 6-8 percent return on investment as they rent it out. 

“We’re not looking at other hotels in Sri Lanka as our competitors, we’re looking at Thailand, the Maldives and Indonesia,” Omkarananda said. Nilaveli will be one of the three project locations that Ideal Developments and Pura Resorts are getting into.