Sri Lanka’s hospitality sector received a significant boost with the Vella BOI Agreement signed on May 29, paving the way for a major expansion of the iconic 98 Acres Resort & Spa in Ella. Backed by a US$ 5.1 million investment, the project aims to elevate the resort into a globally recognized benchmark for luxury hospitality while strengthening Sri Lanka’s position in the high-end tourism market.
Vella BOI Agreement supports luxury transformation of 98 Acres Resort in Ella
The agreement, signed between Uva Greenlands Estate (Pvt.) Ltd and the Board of Investment (BOI) of Sri Lanka, marks an important milestone for the country’s tourism industry. The investment will support an ambitious transformation of the award-winning 98 Acres Resort & Spa, located amidst the scenic highlands of Ella, one of Sri Lanka’s most sought-after travel destinations.
Designed to unfold in two phases over the next 36 months, the project is expected to generate approximately 150 direct employment opportunities while delivering broader economic benefits to the Uva Province. Industry observers view the initiative as a strong signal of investor confidence in Sri Lanka’s tourism sector and its long-term growth prospects.
The Vella BOI Agreement represents the second BOI-approved tourism project undertaken by the Vella group. The company’s first venture under the BOI framework was the renowned Ravana Pool Club in Ella, which has gained international recognition for its unique hospitality and leisure offerings. Building on that success, the group now plans to take destination hospitality to a new level through the expansion of 98 Acres Resort & Spa.
Vella Director and co-founder Eranda Abeyratne said the investment reflects the company’s commitment to contributing to the growth and evolution of Sri Lanka’s tourism industry. He emphasized that the project is intended to introduce a new era of refined luxury, creating greater value for both the tourism sector and the national economy.
According to the company, the expansion will focus on delivering immersive and experience-driven hospitality while preserving the natural beauty and cultural authenticity that have made the resort a popular destination among international travelers. The development aligns with broader efforts to promote luxury tourism Sri Lanka as the country seeks to attract higher-spending visitors and diversify its tourism offerings.
Located in the heart of Ella, 98 Acres Resort & Spa has established itself as one of Sri Lanka’s most distinctive boutique hospitality properties. Surrounded by lush tea plantations and panoramic mountain views, the resort has become synonymous with premium travel experiences. The planned enhancements are expected to further strengthen its appeal among global luxury travelers seeking unique and sustainable destinations.
The investment also highlights the growing importance of Ella tourism investment in supporting regional economic development. Tourism-related projects in Ella have contributed significantly to local employment, business opportunities, and infrastructure development over the past decade. The latest expansion is expected to reinforce the town’s reputation as one of South Asia’s leading tourism destinations.
Beyond the resort itself, the project reflects the Vella group’s broader strategy of developing lifestyle-driven experiences across multiple sectors. The diversified Sri Lankan conglomerate maintains interests in hospitality, adventure tourism, tea production, retail, and leisure experiences. Its portfolio includes notable brands and attractions such as Walaa Kulu, Villa le Maas Tota, Flying Ravana Adventure Park, Ravana Pool Club, Kiri Kopi Cafés, Uva Halpewatte Tea Factory, Halpe Tea Exports, and Ceylon Tea Supermarkets.
The Vella BOI Agreement also underscores a shared vision between the private sector and policymakers to position Sri Lanka as a leading destination for sustainable luxury hospitality in Asia. By combining international standards with authentic Sri Lankan experiences, the project aims to attract discerning travelers while generating long-term economic value.
As global tourism continues to recover and evolve, investments of this scale are increasingly viewed as essential to enhancing competitiveness and attracting premium visitors. The expansion of 98 Acres Resort & Spa is expected to contribute meaningfully to Sri Lanka’s tourism ambitions while showcasing the country’s ability to deliver world-class hospitality experiences rooted in local culture and natural beauty.