Colombo Lotus Tower Rises Strong with Record 2025 Profits

The landmark Colombo Lotus Tower, known locally as Nelum Kuluna, has entered a new phase of growth as its management company reports strong financial results for 2025. Once criticised as a costly vanity project, the tower has now emerged as one of Sri Lanka’s most profitable entertainment and tourism ventures.

According to Colombo Lotus Tower Management Private Limited (CLTMC), revenue for the first eight months of 2025 reached Rs. 1.43 billion, up 31 percent compared with the same period last year. Gross profit increased by 77 percent to Rs. 786.86 million, while profit before tax surged 192 percent to Rs. 539.93 million. Profit margins improved from 18 to 38 percent, indicating a significant turnaround in the tower’s operations.

The results mark a major recovery for a project once labelled a “white elephant.” Built mainly with Chinese financing, the Lotus Tower faced years of delays and criticism over high costs and limited returns. When it opened in 2022, it generated only Rs. 268 million in its first three months. Now, stronger management, cost control, and diversified operations are driving sustained profitability.

CLTMC Chairman Shirantha Pieris attributed the turnaround to disciplined financial management and new revenue streams. The tower’s management has expanded beyond observation deck ticket sales to include events, restaurants, and retail leasing, along with plans for digital entertainment and innovation zones.

A key highlight is the planned bungee-jump facility from the tower’s upper deck, set to be the tallest such attraction in the world. The new feature aims to position the Lotus Tower as an international adventure tourism destination. Additional upgrades include an expanded food court, rooftop events space, and digital exhibitions designed to attract both local and foreign visitors.

The partnership between CLTMC and Citrus Leisure PLC to manage hospitality operations on the 25th to 28th floors has drawn scrutiny. The agreement provides for a 3.5 percent management fee and 10 percent of gross revenue (excluding salaries), plus 20 percent of operating profit. However, even when Citrus Leisure incurred losses of Rs. 20.3 million in late 2023, CLTMC still paid management and staff fees, raising questions about the contract’s risk-sharing structure.

Further, auditors noted weak oversight in staff hiring and salary decisions, with Citrus having full discretion while CLTMC bore all salary costs. There was also an unapproved payment of Rs. 1.01 million for mobile phones and additional spending of Rs. 1.08 million to repair vandalism damage at the observation deck.

Despite these concerns, CLTMC’s strong financial rebound demonstrates improved governance and operational focus. The company says increased security measures, new visitor attractions, and better asset management have all contributed to profitability.

For Sri Lanka, the Lotus Tower’s revival offers both financial and symbolic value—showing that disciplined management and innovation can turn a once-criticised state asset into a viable, revenue-generating venture that supports tourism and the national economy.