Import restrictions forcing major vehicle trader to diversify into hospitality industry

By Hiran H.Senewiratne

Wasana Trading Company Kandana, a leader in the vehicle trading industry, is making an aggressive diversification to the hospitality industry as the automobile market is not proving lucrative due to import restrictions in the country.

“At present the imported vehicle business is too tough due to heavy import restrictions, which resulted in the cost of a unit going beyond the value for money, and affordability was the reason to shift to the hospitality business, chairman, Wasana Trading, Sampath Mirinchige, who is also the chairman of the Vehicle Traders Association (VTA) told The Island Financial Review.

Mirinchige added: ‘I first made inroads to the hotel industry by building a “luxury Cabana” in my coconut estate in Nagoda, Kandana mainly to host VTA meetings. But now we are focusing on this business despite heavy odds and challenges.

‘I, together with my brother Asiri Dayan, offered this cottage to our friends and due to its unique architecture and services there were many requests to expand this. Heeding these requests I built more “luxury cabanas” and also introduced a restaurant and opened “Wasana Nature Resort and Restaurant” in April 2018 which was very successful.

I later added “Kurumba Pub” and created a mini lagoon, mini swimming pool and a floating restaurant investing Rs. 170 million which became a major attraction for families and also became a favorite venue for day outings.

In a bid to provide superior yet affordable banquet facilities, the latest addition to the property is the luxury “Elegance Ballroom” with an investment in the excess of Rs. 500 million. This pillarless banquet facility with modern lighting and fittings was built adjoining “Wasana Nature Resort and Restaurant” with separate parking and could accommodate around 400 guests.

One of the unique features of this project is our focus towards environmental protection and giving emphasis to nature. Hence, none of the plots of greenery and water bodies was tempered with but were protected, which too is an attraction for guests today and is a much sought after venue for wedding photography backdrops.I have obtained UDA approval to build 30 cabanas but have put the project on hold due to the current economic conditions.

The success of “Wasana Nature Resort and Restaurant” has to be attributed to its location, unique eco style buildings and its layout amidst water bodies and also the qualified staff who were hired from overseas as well as from star class hotels.‘Despite the downturn in the tourism industry the ministry is still charging the Tourism Development Levy from us.And despite the drop in tourist arrivals commodity prices have skyrocketed and there are many other issues and we find it difficult to sustain our business. Hence the charging of a 1% TDL from us when the chips are down in the industry is very unfair.In terms of part 1 of the Finance Act No 25 of 2003, every institution licensed under the Tourism Development Act, No. 14 of 1968 has to pay a levy of one per cent on the turnover each year as a Tourism Development Levy.