Introductory Document - Colombo Stock Exchange

Construction of a hot water swimming pool – The estimated cost for the construction of theswimming pool is LKR 7 million. The cost will be funded 70% through equity and balancethrough debt and will be completed within 2-3 years. The cost of construction will be higherthan normal due to the location of the hotel.Planting tea in the remaining 6 acres of the hotel.Expansion of market share through online marketing and broker/ tour guide basedpromotions.Develop outdoor excursion activities such as visits to the hydro power plant, cycling, hikingand tracking.Promote the use of the dining room floor area for formal and informal gatherings such aswedding receptions, club meetings, parties and family re-unions and gatherings.Resume marketing campaigns through print media as well as other promotional activities toreach the targeted 70% occupancy rate throughout the year.Given the strong performance in the tourism sector in the country since the end of the war,the Company expects its business to achieve significant growth in the future and expect toattract different segment of clients.Projected cashflows for the three of the major projects, i.e. construction of 20 additional luxuryrooms, construction of a gym and snooker room and a hot water swimming pool aforementioned,have been presented in Annexure IV. These have been extracted from a project evaluation reportcarried out by a group of undergraduate students, at the request of the Directors of RFL.2.6 MAJOR ASSUMPTIONS ON FUTURE PLANSOverall economic conditions and anticipated economic revival would materialize, giving rise togreater purchasing power and customer spending of both local and foreign visitors.Increased promotion of the local tourism sector, with Sri Lanka portrayed as an ideal touristdestination.Increase in inflow of tourist arrivals to the country.Improvements in the transportation and infrastructure in the island, which will enhance thefacilities available to tourists.13 Ramboda Falls Limited – Introductory Document