• No bidder for revolving restaurant, management company takes charge
• Digital art museum by Dec., revolving restaurant by Nov.

Ever since its grand opening on 15 September 2022, the Colombo Lotus Tower has been drawing inquisitive visitors from all corners of the island. To shed light on the tower’s journey from concept to success, The Sunday Morning Business sat down for a chat with its CEO Major General (Retd) S.A.P.P. Samarasinghe, who shared insights into its performance, future attractions, and its unique position in Sri Lanka’s landscape.

Following are excerpts from the interview: 

How has the tower performed in terms of revenue generation and visitor attraction since the opening?

Our company – the Colombo Lotus Tower Management Company (Pvt) Ltd. – was established on 1 March 2022. We took ownership of this building on 8 August.

We entered into a management agreement with the Telecommunications Regulatory Commission of Sri Lanka (TRCSL), the owner of the Lotus Tower, and our company operates under the State Treasury. The handover of the building occurred on 8 August 2022 and we opened it to the public on 15 September. Initially, we were unsure about its potential success.

During the six months between March and August, we engaged with various professionals and established committees, with many volunteering their services. We developed a business model and financial plan for the Colombo Lotus Tower. Our vision was to create a hub for technology, entertainment, and education, built on these three pillars.

We opened our doors to the public on 15 September, and now, almost a year later, we are celebrating our achievements. I’m pleased to report that as of yesterday (12), we have welcomed 1,170,000 visitors to the tower, including 28,702 foreigners. This is a big accomplishment.

Importantly, we haven’t relied on Government funding to sustain our operations; instead, we have generated profits. When we took charge, the tower was essentially a structural shell. However, we have managed to raise the necessary funds without burdening the Government.

Our daily operating costs, which include electricity, water, and staff salaries, amount to approximately $ 1 million. While our company initially had just eight employees, we have grown to nearly 72 in the past year. Despite the challenges, our team has successfully managed operations.

Can you provide details about the recent incident where a group of individuals allegedly vandalised property at the Lotus Tower? What security measures are in place to prevent such incidents in the future?

There have been incidents involving young individuals, schoolchildren, and couples, who have vandalised parts of the Lotus Tower. Despite its status as a national monument, these incidents have occurred every few months. There is a huge cost for maintaining the tower and the security measures in place to prevent future acts of vandalism.

While we have limited physical security presence, we have invested heavily in state-of-the-art security equipment, including numerous CCTV cameras. However, the real issue lies in the mindset of some individuals. While we have apprehended and charged some culprits, we have also implemented preventive measures.

For instance, we have added light boards and protective coverings in areas prone to vandalism, making it difficult for anyone to deface the tower. We urge our citizens and visitors to view the Lotus Tower as a national icon and public property that deserves protection.

It is mentioned that the Colombo Lotus Tower Management Company signed an investment agreement of $ 1 billion with Kreate Design Ltd. for the development of water sports and an entertainment zone. Could you elaborate on the scope and significance of this investment for Sri Lanka and the Lotus Tower?

Regarding the agreement you mentioned, there seems to be some confusion. We did not sign an agreement for $ 1 billion. Instead, we had initially signed an agreement to rent the second floor of the tower to Kreate Design Ltd. They provided us with an advance payment of $ 20,000. However, this arrangement did not materialise because they failed to present a viable proposal for the entertainment venture.

The situation has now changed. We terminated the previous agreement, as it automatically expired within three months due to their failure to sign a lease agreement. Thereafter, we successfully entered into an agreement with another company to lease the second floor for an entertainment hub, including various entertainment events. This Indian company has provided us with a six months’ advance payment and it is actively working on its plans.

Prior to its completion in 2012, the original plan was to generate revenue from the antenna mast. However, this plan faced delays and challenges, and it was only in 2019 that the tower was opened to the public, even though it was not officially handed over to us, and several major defects needed to be rectified.

In 2022, when our company was established, we addressed these defects during the defect liability period and officially took over the tower. Now, you can see the tower brilliantly illuminated every night, making it visible throughout Colombo. Importantly, we have not burdened the country with operational costs. While it may take time to generate the full $ 113 million in revenue, the Lotus Tower has already become an iconic symbol of Sri Lanka.

People from all walks of life, including thousands of schoolchildren and families, as well as many Sri Lankan residents and visitors, come to experience the tower every day. 

In light of the Lotus Tower’s success in attracting visitors, are there any plans to expand or introduce new attractions and experiences within the tower complex to maintain its appeal?

Initially, when we opened the Lotus Tower to the public within a month, we did so with limited facilities, mainly the observation deck. However, we have been working to enhance the visitor experience. 

1. Innovative centres for children: We are currently in the process of setting up dedicated areas for children, making it a family-friendly destination. We have even ordered equipment from China to make this experience special.

2. Digital art museum: Sri Lanka currently lacks a digital museum and we aim to fill this gap. We have imported equipment from abroad and are in the creative process of setting up a digital art museum. This is expected to open in December.

3. Revolving restaurants: One of the significant additions to the Lotus Tower is revolving restaurants. Surprisingly, not only Sri Lanka but even South Asia lacks such a feature. We initiated a bidding process, but due to the challenging situation in the country over the past year, we did not receive suitable bids. As a result, our company has decided to invest in this venture. We have identified an operator and we are currently finalising a management agreement. The revolving restaurants are expected to be open to the public between 1 and 15 November. 

4. Banquet halls: The tower also features banquet halls that are already hosting weddings and other events, contributing to its income.

5. Souvenir shop: We operate a souvenir shop within the tower, which generates significant revenue, with an income of approximately Rs. 4 million.

What is the status of planned sports activities such as bungee jumping? Have any investors been found and have the feasibility tests been conducted? 

Regarding bungee jumping, we had an agreement with a company based in Singapore that specialises in bungee jumping. They initially planned to start this thrilling activity in August this year. However, they provided us with some drawings for the platforms, and our structural engineers, along with consultants, felt that certain changes were needed to ensure safety. 

New drawings have been evaluated and bungee jumping will most likely commence by 1 December. The public can expect to experience bungee jumping from the Lotus Tower possibly around Christmas. We anticipate a significant number of foreigners participating and we will receive 20% of the revenue from this activity.

As for affordability, the foreign company handling bungee jumping will manage it independently and the pricing will be determined by them.

Regarding environmental sustainability, we have placed a strong emphasis on environmental concerns. The Beira Lake, for example, is being cleaned, and the surrounding areas are being maintained to meet environmental standards.

We have signed agreements for water sports and boats will be introduced next month. We are committed to maintaining high environmental standards and following the rules and regulations set by the environmental authorities.

In terms of accessibility for schoolchildren and underprivileged individuals, we have considered this aspect in our plans. We want to ensure that people from all segments of society can continue to visit the Lotus Tower. We have restaurants and dining options catering to various budgets and preferences, including fine dining and revolving restaurants. 

We are committed to making this landmark accessible to all, even in the future. However, it’s important to note that we cannot offer free access, as we need to generate revenue to sustain and develop the tower.

As for the tower’s ability to repay the debt incurred during its construction, this was a concern initially. However, with proper management and revenue-generating activities, we believe the Lotus Tower will be able to generate sufficient income to cover its operational costs and contribute to repaying the debt. It is a long-term endeavour, but we are confident in the tower’s potential to be financially sustainable.

In 2012, there were different plans for the Lotus Tower project. Over the years, spanning from 2000 to 2022, different governments and concepts were involved, leading to changes in the project’s direction. The total cost of the project was $ 113 million and we secured a loan of only $ 88 million dollars. By 2016, the Exim Bank had provided only $ 66 million of that loan. 

The balance had to be covered by the Sri Lankan Government. Consequently, it became a financial burden to the country. However, it’s important to note that despite not generating any revenue initially, we used our own funds to pay off a significant portion of the loan. Only $ 14 million remains to be repaid. So yes, it was initially a financial burden, but we’ve come a long way.

Our current aim is not to keep the tower dormant or as a mere expense. We have devised various plans and business proposals to ensure its success. We consider the Lotus Tower as an iconic symbol of Sri Lanka. It will be a significant attraction for both foreigners and locals, providing entertainment and creating job opportunities. 

Return on Investment (ROI) isn’t just about monetary gains; it’s also about the positive impact we have on the community and the country as a whole.