Mr. Harry Jayawardena, the former Chairman of SriLankan Airlines, has advocated "a more aggressive open sky policy" for the country for which he says "there is a dire need."

"Over the years bilateral relations with India, Malaysia, Singapore and a host of South East Asian nations have been signed and sealed. It is now an opportune time for the same to be reached with European carriers," he has said in the chairman’s statement of Aitken Spence Hotel Holdings PLC which has just been released.

Jayawardena pointed out that Sri Lanka announced an open sky policy as far back as 2004 adding that bilateral open sky policies with a greater number of nations, and a wider open sky framework is necessary for the growth of both the country’s aviation as well as tourism industries.

"In an era where increasing fuel costs have been curtailing long haul passenger travel as air travel becomes increasingly more expensive, there is a dire need for a more aggressive open skies policy to be put in play," he said.

Aitken Spence Hotel Holdings now represented in Sri Lanka, the Maldives, India and Oman posted gross revenues of Rs.6.4 billion in the year ended March 31, 2008, up from Rs.4.3 billion the previous year and an attributable profit of Rs.512.7 million which was over twice the Rs.202.6 million earned a year earlier.

This profit is a ten-year high for the group with only the Rs.413.5 million earned in 2004 coming anywhere close.

The company however is continuing its low dividend policy with the directors proposing a dividend of Re.1 per share against 75 cents paid the previous year.

Jayawardena said that prospects that were beyond Sri Lanka’s shores were not beyond the company’s reach. They were currently managing five properties in the Maldives, four in Oman and two in India in addition to its portfolio of some of the top resorts here in Sri Lanka.

"We can assure you, our shareholders, the promise of a fruitful return from this expansionary shift in operations within the next two financial years," he declared.

Both Jayawardena and the company’s Managing Director, Mr. Rajan Brito, focused on the lack of experienced trained human resources for the company’s operation. Brito said that the hotel industry that had experienced an exodus of expertise both by migration and overseas employment, had taken measures to deal with the problem.

"The local industry experiencing stagnation in career development and inadequate compensation has prompted industry personnel to leave the Sri Lankan industry. Our recognition of this future challenge has prompted a strategy to mitigate and effectively manage same," he said.

Part of the response was their entry into overseas operations which will give their people the opportunity of being seconded to hotels abroad giving them access to both new experiences and avenues of earning higher incomes.

On top of that the assurance of confirmed employment status within the group remained available if they wished to return home to Sri Lanka, Brito said.

He also made some comments on rising operational cost both due to increases in energy and food prices together with inflation.

A number of their key resorts were offering guests "an authentic Sri Lankan experience" both in terms of cuisine and the arts, using locally produced indigenous food that helped hold cost.

Also, efficient power and water usage at their different resorts had also helped although cost increases in the recent past is of great concern in the context of the stagnant demand for hotel rooms and the resultant pressure of pricing.

Aitken Spence Hotel Holdings has a stated capital of Rs.1.06 billion, reserves of Rs.1.03 billion and retained earnings of Rs.1.67 billion in its books. It carries interest bearing non-current liabilities of Rs.2.9 billion.

Net assets per share had grown to Rs.93.46 from Rs.81.56 and the company’s share closed at Rs.93 at the end of the year, up from Rs.70 a year earlier.

The major shareholders of the company are: Aitken Spence and Company PLC (71.21%), Employees Provident Fund (3.84%), Nilaveli Beach Hotels Ltd. (2.66%), Sri Lanka Insurance Corporation Ltd. – Life Fund (2..53%), Bank of Ceylon A/C Ceybank Unit Trust (2.04%), Freudenberg Shipping Agencies Ltd. (1.36%), Ace Cargo (Pvt) Ltd. (1.32%) and Aitken Spence Hotel Managements (Pvt) Ltd. 1.05%).