Sri Lanka’s Board of Investment recently signed a 4.5 million US dollar investment agreement with Sundara (Pvt) Ltd, to develop a luxury hotel on the country's south coast.  The project is to be completed by 2020.

Speaking at the event the chairman of the Board of Investment Mangala Yapa, stated that this investment will be a great step in order to build up confidence among investors to invest more in Sri Lanka.

Meanwhile speaking at the event Sundara (Pvt) Ltd Co-Founder Dale Rennie said, the main purpose of investing in Sri Lanka is due to Sri Lanka's long-term tourism prospective.

“We are interested in bringing a lot of these green initiatives to Sri Lanka” he further noted.

The property, named The Plantation Koggala, will have 14 residency villas.

Rennie and his wife and Co-Founder Sabrina Van Cleef Ault are the major investors of the project who owns 80% of the shares in Sundara (Pvt) Ltd.

The hotel will be built on a former cinnamon plantation and will start its construction work in a month.

Investors in the villas have the option of living in them or allowing the hotel management to rent them out and receive a 7% annual return.

The property was marketed to investors in the Singapore, Hong Kong, Australia, Germany, Switzerland, Holland and the US.