Business
The Rise of Aviyana: Sri Lanka’s luxury hospitality revolution
By Saman Indrajith
As Sri Lanka ushers in 2025, the nation prepares to unveil a game-changing addition to its hospitality landscape—Aviyana Ceylon, the country’s first seven-star luxury hotel. Situated amid the serene hills of Udispattuwa, Kandy, this extraordinary property promises to set a new global benchmark for opulence and innovation. Spanning 24 acres with a masterfully designed balance of wellness and bespoke experiences, Aviyana offers an unparalleled blend of tranquility and adventure, crowned by breathtaking views of the Knuckles Mountain Range.
“Aviyana Ceylon is not just a hotel; it is a gateway to Sri Lanka’s future as a global leader in luxury hospitality. This year, we welcome the world to discover the extraordinary – a legacy that celebrates both innovation and our nation’s rich cultural heritage,” said Dr. Thisara Hewawasam, Chairman of Aviyana during an interview with the Sunday Island.
Excerpts of the interview:
Q: What inspired you to create Sri Lanka’s first seven-star luxury hotel, Aviyana Ceylon, and how do you see it reshaping the country’s hospitality landscape?
A: Tourism in Sri Lanka dates to the arrival of Prince Vijaya, followed by centuries of foreign visits driven by trade. However, in modern times, there’s been a shift towards offering more than just basic accommodation for tourists. While Sri Lanka attracts around two million visitors annually, spending an average of USD 2,000 each, countries like the Maldives see tourists spending up to USD 5,000. To bridge this gap, I believe Sri Lanka needs a new kind of luxury experience.
We currently lack facilities that cater to high-net-worth individuals. The star hotels in Sri Lanka, typically charge between Rs 15,000 and Rs 75,000 per night, while few top-tier hotels charge over Rs 200,000. To attract ultra-wealthy tourists, we need a seven-star hotel that offers unparalleled luxury, combining all the best facilities under one roof.
Aviyana Ceylon is designed with this vision in mind: to raise the average income from foreign guests and contribute to the local economy. Many feared this ambitious project would fail, especially since most leading hotels here are international chains. However, our focus is on promoting Sri Lankan culture, wellness, traditional medicine, and Ayurveda, which will strengthen our identity in the hospitality industry. This marks a pivotal moment for Sri Lanka’s tourism.
Q: Aviyana Ceylon, nestled in the hills of Kandy, emphasizes wellness and bespoke experiences. How does the hotel blend Sri Lanka’s cultural heritage with modern luxury?
A: There are two key factors when creating a memorable resort experience: the facilities provided and the location’s offerings. At Aviyana Ceylon, we excel in both. While other hotels, like Mount Lavinia, boast a heritage and coastal view, Aviyana’s location is unique. It offers a sweeping view of one-tenth of Sri Lanka’s land area, spanning five districts. This breathtaking scenery is complemented by a diverse climate, where guests can experience five different temperatures in a single day—something no other hotel in the country offers.
Our surroundings are rich with nature—lush greenery, medicinal plants like Aralu and Nelli, and pure water from the Knuckles range, considered the cleanest in the world. The area also offers activities such as bungee jumping, bird watching, and hiking, all framed by nature’s beauty.
Beyond nature, we bring Sri Lanka’s renowned hospitality to the forefront. We celebrate our food culture by serving dishes from King Rajasinghe’s menu, where food offers both nutrition and medicinal benefits. We also embrace customer-centric service, adjusting the hotel’s offerings to suit the guest’s preferences, from security to connectivity.
Aviyana Ceylon will host traditional events weekly, featuring artists from the Dalada Perahera in Kandy. We’re also bringing world-renowned chefs who have not visited Sri Lanka before. Security is a top priority, with advanced systems ensuring the safety of all guests. The hotel includes an on-site hospital, helicopter service, and an underground area for emergencies.
Aviyana Ceylon also stands out by offering unique experiences, such as temporary ordination for Buddhist guests, access to indigenous medicine, and a dedicated hospital and helicopter service for emergencies. This fusion of luxury, culture, and wellness creates an unforgettable experience.
Q: Aviyana’s strategic partnership with the Al Nahyan Royal Family of Abu Dhabi is a significant milestone. How do you see this collaboration enhancing Sri Lanka’s global appeal as a luxury travel destination?
A: When we first approached the royal family, they viewed Sri Lanka only as a country from where they get their housemaids. To change this perception, we showed them a five-minute video showcasing the beauty and offerings of the country, which they found astonishing. This seven-star hotel concept is designed to cater to wealthy clients from Arabic countries, who have long played a key role in international trade, from the Silk Route to modern times. The Al Nahyan family has been instrumental in connecting us with high-net-worth individuals. We plan to expand our partnerships globally, reaching markets in India, the US, Europe, Russia, and other Western countries. Our vision is to host not only the royal family but also former world leaders, renowned sports figures, and artists at Aviyana Ceylon.
Q: Sustainability is often a key focus in high-end hospitality today. How does Aviyana Ceylon balance opulence with environmental responsibility, particularly in Kandy’s scenic highlands?
A: At Aviyana Ceylon, sustainability is integral to our design. We only removed 33 trees, leaving much of the 24-acre property untouched. Instead of building a massive 6,000-7,000 room hotel, we chose just eight acres for construction. We’ve also launched the ‘Breath’ project, planting 33,000 trees to date. Acknowledging the impact of carbon emissions, we invite guests to plant a tree during their visit, with their name and GPS location, so they can track its growth worldwide.
Given the hotel’s mountaintop location, we ensure no waste leaves the property. We’ve implemented an advanced Japanese waste recycling system at a significant cost. Wastewater is treated before being released into the ground. Our broader vision is to create a tourism zone in Kandy, linking local attractions like Victoria Falls, the Knuckles Range, and the Dalada Maligawa, positioning the area as a major tourism hub in the next 10-15 years.
Q: As Aviyana prepares for its grand opening, what specific features or experiences do you believe will set it apart from other luxury hotels, and what are your long-term aspirations for the brand?
A: Sri Lanka, known mainly for cricket and Ceylon tea, lacks a strong tourism brand and policy. Despite being one of the best destinations globally, we fail to leverage the opportunities tourism presents. Aviyana Ceylon aims to change that by becoming Sri Lanka’s defining luxury brand, much like cricket. We’re working with top global influencers to promote the hotel, with plans to invite one from each of 160 countries to cover our opening. With social media reach, we hope to captivate millions worldwide, offering a marketing campaign unlike anything seen before.
Our goal is to create a lasting impact not only for Aviyana Ceylon but for Sri Lanka’s tourism sector. We plan to introduce a hotline and travel insurance for all tourists to enhance their experience, benefiting the entire industry.
As we near completion of the seven-star hotel, we expect heads of state from Arab countries to attend our opening. With the government’s support, we anticipate a 20% boost in tourism revenue and increased hotel prices in Colombo. Looking ahead, we’re also planning the Aviyana-2 project, with a world-first gem showroom and hospital, bringing Sri Lanka’s pride to the global stage.
Business
LOLC Finance reinforces market leadership with strong growth
LOLC Finance PLC, the flagship finance company of the LOLC Group and Sri Lanka’s largest non-bank financial institution, delivered a strong financial performance for the year ended 31 March 2026, supported by robust lending growth, stronger recurring income, improved asset quality and a capital position that remained comfortably above regulatory requirements.
The Company reported profit after tax of Rs. 27.4 billion for the year, compared with Rs. 25 billion in the previous year. At headline level, this represents growth of around 9%. However, the headline comparison does not fully capture the improvement in the Company’s underlying performance.
The previous year’s profit included significant non-recurring gains linked to Sri Lanka sovereign bond-related impairment reversals, partially offset by a derecognition loss. On a net basis, these one-off items added approximately Rs. 4 billion to the prior year result. Adjusting for this, the prior year’s underlying profit base was closer to Rs. 21 billion. Against that adjusted base, the current year profit of approximately Rs. 27 billion reflects underlying profitability growth of close to 30%.
This is the more important message behind the numbers. LOLC Finance did not merely preserve profitability in a recovering economic environment; it expanded its recurring earnings base materially, while simultaneously growing its balance sheet and improving key credit quality indicators.
The improvement was driven primarily by core income. Interest income increased to approximately Rs. 79 billion, supported by strong expansion in the lending portfolio. Interest expense rose at a slower pace to approximately Rs. 29 billion, allowing net interest income to grow to approximately Rs. 50 billion. This demonstrates the Company’s ability to expand its loan book while maintaining control over funding costs.
Net fee and commission income also improved, rising to approximately Rs. 3 billion, reflecting higher business volumes and broader customer activity. Total operating income increased to approximately Rs. 56 billion, despite the absence of the large sovereign bond-related gains that benefited the previous year. This shift from one-off gains to recurring operating income is a clear positive from an earnings-quality perspective.
The balance sheet story was equally significant. Total assets grew by approximately Rs. 129 billion during the year, reaching around Rs. 559 billion as at 31 March 2026. The main driver of this expansion was the lending portfolio, with gross loans and advances increasing from approximately Rs. 305 billion to approximately Rs. 423 billion, representing growth of nearly 39%.
This level of loan book expansion is notable not only because of its scale, but also because it was spread across multiple product categories. Growth was recorded across key lending lines including finance leases, gold loans, speed drafts, alternate finance, personal loans and term loans. This points to a broad-based recovery in customer demand rather than growth concentrated in a single product line.
Business
‘Law enforcement failures leading to gross abuse of Malaiyaha Tamil labour’
Malaiyaha Tamil workers in Sri Lanka’s private tea estates and smallholdings are facing widespread labour abuses that amount to multiple indicators of forced labour, according to a new report released last week by Amnesty International.
‘The Sri Lankan government is urged to strengthen labour protections, improve enforcement mechanisms and remove barriers that prevent Malaiyaha Tamil workers from accessing their rights under both domestic law and international obligations, a media release on the report explained.
‘Workers are being subjected to intimidation, physical violence, harassment, debt bondage, restrictions on movements, wage withholding and severely poor living and working conditions, the release added.
Some extracts from the release:
‘The research focused on tea estates in Sri Lanka’s Southern Province, particularly in the Galle and Matara Districts. It is based on visits to 45 estates conducted between January 2024 and January 2026, alongside 159 interviews with workers, discussions with Estate Managers and Supervisors, and 15 focus group discussions involving 65 workers. Across all sites, researchers found what they describe as a consistent pattern of exploitation and discrimination affecting Malaiyaha Tamil workers.
‘Workers reported being forced to meet unrealistic daily tea-picking targets, often set at more than 25 kilograms per day. Failure to meet these targets reportedly resulted in wage deductions, delays, or reduced pay, sometimes bringing daily earnings down to as little as LKR 1,000 (around USD 3.10). Workers also described a cycle of wage advances and loans that left them increasingly indebted to estate owners, raising concerns about debt bondage in the plantation sector.
‘Several workers also told researchers they had experienced or witnessed verbal and physical abuse by estate managers, particularly when they were late for work, questioned unpaid wages, or failed to meet production targets. One worker described being beaten with hands, legs, and sticks, and said such violence was still occurring. Others reported that wages were often withheld or manipulated based on arbitrary assessments of productivity.
‘Employers frequently classify them as “casual workers,” which denies them access to maternity benefits, pensions, sickness leave, and other statutory entitlements. The report also notes that trade union representation is largely absent in the Estates surveyed, leaving workers with little collective bargaining power or protection against abuse. According to the report, workers face multiple barriers in accessing justice, including language barriers, discriminatory treatment by officials, lack of documentation, and weak labour inspection mechanisms. These factors, the report says, prevent effective enforcement of labour laws and allow abusive practices to continue largely unchecked.
‘Smriti Singh, Regional Director for South Asia at Amnesty International, said the findings reflect systematic violations of labour laws and a failure of enforcement by the state. She said, private tea estates are operating with little accountability and that the pattern of abuse raises serious concerns about forced labour.’
By Hiran H. Seneviratne
Business
West Asian uncertainties continuing to dampen share trading
Low investor sentiment persisted in the stock market yesterday due to lingering West Asian uncertainties particularly in relation to Israel and Lebanon.
Both indices moved downwards. The All Share Price Index went down by 48.78 points, while the S and P SL20 declined by 7.46 points. Turnover stood at Rs 1.67 billion with two crossings.
Those crossings were; HNB crossed 185718 shares to the tune of Rs 73.4 million; its shares traded at Rs 395 and Dialog Axiata 1 million shares crossed for Rs 44 million; its shares traded at Rs 44.
In the retail market companies that mainly contributed to the turnover were: RIL Properties Rs 148 million (5.3 million shares traded), Dialog Rs 108 million (2.4 million shares traded), Aitken Spence Rs 74.4 million (542,100 shares traded), LB Finance Rs 72.2 million (7.3 million shares traded), Royal Ceramics Rs 67.2 million (1.4 million shares traded), Renuka Agri Foods Rs 64.8 million (5.2 million shares traded) and JKH Rs 53.7 million (2.7 million shares traded). During the day 71 million shares volumes changed hands in 23582 transactions.
It is said that banking sector counters, especially HNB, performed well while the real estate sector stocks, especially RIL Properties, performed well. An overall mixed performance was noted in most of other sectors, especially finance and agriculture.
Yesterday the rupee was quoted at Rs 330.00/332.00 to the US dollar in the spot market, from 331.00/332.00 Friday, dealers said, while bond yields were flat.
By Hiran H Senewiratne
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