By
Rebecca Gibson |
Royal Asia Cruises (RAC) is to set up Sri Lanka’s first luxury cruise line after securing an agreement with the country’s Board of Investors (BOI).
Lakshman Jayaweera, chairman of the BOI, and Mano Sinnarajah, chairman and managing director of RAC, signed the deal, which includes a medium-term investment of US$200 million. Initially, the deal will provide a US$33 million investment in the form of a Foreign Direct Investment.
While RAC initially plans to operate two vessels, it aims to increase the investment to US$720 million to enable it to establish a five-ship fleet in the future. The operator, which currently has offices in the US and in India, will cater to the global cruise industry, but will have a particular focus on the Indian, Sri Lankan, European and southeast Asia markets.
RAC’s first ship, Asian Pride, will be able to accommodate 800 passengers and is expected to sail her first cruise in late 2015. A second ship, which will cater for 1,500 to 2,000 guests, is to be deployed in 2016. Both ships will feature interiors created by marine architecture and interior design firm Tillberg Design.
Sailing year-round from its Colombo, Sri Lanka, homeport, RAC plans to offer seven-night cruises to destinations such as the Maldives and Cochin. The operator will also provide three- or four-night cruises around Sri Lanka, as well as ten- or 11-night roundtrips to Singapore.
It is expected that the venture will provide many direct and indirect benefits to the Sri Lankan economy, while enabling the country to become a major maritime hub and meet tourism targets set by the government.